Suppose the California legislature passed a sweeping law to lower the number of regulations forbuilding homes such as increasing the parking requirements and setback requirements.Suppose there is a housing tax. a. What is the effect of this law on the PES for housing? b. What effect would this law have on the tax burden for buyers?

Question
Asked Oct 28, 2019
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Suppose the California legislature passed a sweeping law to lower the number of regulations for
building homes such as increasing the parking requirements and setback requirements.
Suppose there is a housing tax.
 
a. What is the effect of this law on the PES for housing?
 
b. What effect would this law have on the tax burden for buyers?
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Expert Answer

Step 1

In this case sweeping law will empowers California government to make necessary law and give proper implementation of that law in their nation; hence, it gives power to California government to enact federal laws.

(a)

Here, California government wants to reduce regulations over building homes where California government charges a housing tax to fulfill those neces...

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Measurements of elasticity

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