A Change in Money Income of Consumers Will

question 144

Multiple Choice

A change in money income of consumers will:

• A)affect the demand for housing through the income effect of a price change.
• B)affect the demand for housing through the substitution effect of a price change.
• C)shift the market demand curve for housing.
• D)affect quantity demanded only if housing is an inferior good.
• E)have no impact on the market demand for housing.

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Definitions:

Owner's Drawing

Refers to the withdrawal of cash or other assets from a business by the owner for personal use.

Owner's Investment

The total amount of money or assets that an owner puts into his or her business.

Equipment

Physical assets used in the operation of a business to produce goods or services.

Monthly Rent

Regular payment made for the use of property or land, agreed upon on a monthly basis.