The income elasticity of demand for housing property is exactly ...

[anshika]

The income elasticity of demand for housing property is exactly 1.40 . Due to a recession, you expect incomes to drop by 5 next year. How will consumers adjust their purchase for housing property?
 a. Buy 5 more houses
  b. Buy 5 fewer houses
  c. Buy 7 more houses
  d. Buy 7 fewer houses

Question 2

Suppose this customer is known to throw a fit and scare away other customers if charged high prices. If the shopkeeper moves first, he would ask for
 a. A high price
 b. A low price
 c. A pony
 d. All of the above

[TDubDCFL]

Answer to Question 1

d

Answer to Question 2

b