Housing Is a Normal Good That Tends to Take Up

question 65

Multiple Choice

Housing is a normal good that tends to take up a substantial share of a consumer's spending.An increase in the price of housing will result in:

• A)both an income and substitution effect to decrease the quantity demanded of housing.
• B)both an income and substitution effect to increase the quantity demanded of housing.
• C)the income effect of increasing the quantity demanded of housing and the substitution effect of decreasing the quantity demanded of housing.
• D)the income effect of decreasing the quantity demanded of housing and the substitution effect of increasing the quantity demanded of housing.

---

Definitions:

Seniority System

A system in a workplace where employee benefits such as promotions and layoffs are determined based on the length of service.

Strategic Objectives

High-level goals aligned with an organization's mission and vision, focused on achieving long-term success.

Compensation System

A structured plan designed by organizations to pay its employees, including wages, benefits, bonuses, and raises.

Pay Differentials

Variations in compensation among employees, often based on factors like job role, experience, education, location, or performance.