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econ question
Residential housing in Shenzhen and Hong Kong are substitutes. Suppose the Hong Kong SAR Government had provided more land for auction and then the total land available for residential housing increases. (On average, assume that a building will be completed after three years from the date of auction.) On the other hand, suppose three years later the Hong Kong SAR Government suddenly agreed with the Shenzhen Government to open the customs in Lo Wu 24 hours a day. The Hong Kong people found living in Shenzhen more convenient than before. What would be the effects on the equilibrium price and equilibrium quantity of the residential housing market in Hong Kong after three years?
thx
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