Suppose the government is considering a program to give housing vouchers to poor people. Assume the value of the voucher is greater than the amount currently being spent on housing per month by poor people. The housing voucher will lead to fewer apartments for poor people.

Question

Quizplus · Accepted Answer

Housing vouchers increase the purchasing power of poor people, allowing them to afford better or more housing than they could without the vouchers. This does not necessarily lead to fewer apartments for poor people; instead, it could increase demand for affordable housing, potentially encouraging more supply if the market responds accordingly.

Suppose the Government Is Considering a Program to Give Housing