Hey /biz/, can you guys explain how the supply & demand curves would change based on the following situation:
The city buys a bunch of houses on your street to use them for subsidized housing (for homeless). Would supply and demand both shift left? Thanks.
Yes, quantity goes down and price goes up due to there being less, thus p↑q↓.
Realistically price goes down because people don't want to live near homeless people, but that's not the question.
Supply shifts left because government now monopolizes supply, making availability less
Demand shifts right, but by those who have less money, so it's a push, see >>1028710
Overall demand by quality tenants shifts left, since no one of any value wants to live in government hovels
It's not the best analogy to apply pure S&D curves to