The diagrams illustrate the demand for and supply of houses. During the short run, the quantity of houses available for sale, S1, is fixed. A government chooses to permit some agricultural land to be used for house construction and gives subsidies to lower-income purchasers of the new houses. Which diagram represents the long-run situation?
- A[IMAGE:9708_w23_qp_12_p5_diagram_2]
- B[IMAGE:9708_w23_qp_12_p5_diagram_1]
- C[IMAGE:9708_w23_qp_12_p5_diagram_4]
- D[IMAGE:9708_w23_qp_12_p5_diagram_3]