Question

If income decreases by 25% and, in response, the quantity of housing demanded

Answer 1

If income of people decreased by 25% the demand for housing will also decrease as demand of a good is also dependent on the income of consumer . A consumer can buy more of a good if his income is more and will buy less when income is less .So when income declines the overall demand of good will decline . So as income decreased by 25% less people will be able to afford a house so their demand will decrease which will lead to leftward shift of demand curve of housing.