An economy faces a 20% shortage of housing. The government constructs 10% more homes for lower-income families and sets the rent below the market equilibrium. What effect will this direct provision have on the market?
- AA greater imbalance in the market in private housing will develop.
- BHousing waiting lists for poorer families will be cleared.
- CThe supply of government housing will fall short of demand.
- DThe supply of private housing for rent will fall by 10%.