If there were no supply response to the housing allowance program, the demand shift caused by the program would be large enough to cause a serious increase in the price of standard housing services. How-ever, three supply responses prevent the potential price increase from occurring: repair of substandard housing, supply adjustment, and occupancy rate adjustment. The first supply response reduces the potential price increase by two-thirds, the first and second together reduce it by four-fifths, and all three together reduce it by 97 percent.
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