In his recent State of the Union address President Biden proposed a tax credit of 10 000 for first time homebuyers People

Question

In his recent State of the Union address President Biden proposed a tax credit of 10 000 for first time homebuyers People purchasing homes will have their income taxes reduced by 10 000 If this is enacted who will benefit from it It depends on the relative elasticities of supply and demand Buyers will gain more if demand is more elastic and supply is less elastic People selling homes will get all the benefits because they will increase what they ask for homes by 10 000 First time homebuyers will get all the benefits because it will reduce the net price of the home they buy by 10 000 It depends on the relative elasticities of supply and demand Buyers will gain more if demand is less elastic and supply is more elastic Whoever realizes the benefit in question 1 how much will the total benefits that the public realizes add up to per home sold Less than 10 000 10 000 10 000

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