If the Cost of Rental Housing Increases Relative to House

question 26

True/False

If the cost of rental housing increases relative to house prices,demand for purchased housing tends to increase.

---

Definitions:

Operating Income

This refers to the profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Sales Price

The amount that a customer pays to purchase a good or service from a business.

Variable Costs

Expenses that fluctuate with the level of output, including costs such as raw materials and labor.

Fixed Costs

Expenses that do not change with the level of production or sales.