A change in the money income of consumers will _____

Question

Quizplus · Accepted Answer

A change in the money income of consumers will shift the market demand curve for housing. As income increases, consumers can afford to spend more on housing, and thus demand for housing will increase. Similarly, a decrease in income will lead to a decrease in demand for housing. The income effect and substitution effect of a price change can also impact demand for housing, but they are not directly related to changes in money income. The quantity demanded of housing may be affected by changes in income only if housing is an inferior good.

A Change in the Money Income of Consumers Will _____