Question

1.) Economists refer to the method of occupancy as ……………… …………….

emotional income

peripatetic selection

tenure choice

inertial bias

2.)

What is the correct sign for the elasticity of demand for housing?

positive or +

negative or –

per cent or %

dollar or $

3.)

If the household's income elasticity of demand for housing is 1.2, then:

for every one per cent increase in income, the household will acquire 1.2% more housing

for every one per cent increase in income, the household will acquire 20% more space

for every 10% increase in housing space, household income drops by 1.2%

for every 1% increase in space, household income increases by 1.2%

Answer 1