How would introduction of a stamp duty tax in Australia affect the demand and supply of housing? Would it shift the supply OR demand curve (and in which direction)? How would the market price change (and in which direction)? Would the value of property prices in Australia (including the tax) increase or decrease? Please let me know if the question isn't clear or not well-defined. Thanks.

  • $\begingroup$ A likely effect is to reduce the number of transactions. As for whether the supply or demand curve moves may depend on who is nominally paying the tax $\endgroup$ – Henry Feb 16 '18 at 9:13

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