Hints on increasing household income
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The increase in the level of household income will act to change the demand conditions within the housing market.
The higher household income will cause households to increase their consumption of all normal and luxury goods. Therefore, if it is assumed that housing is a normal / luxury good, then the demand for housing will increase.
The magnitude of the shift will be influenced by the income elasticity of demand.
INCREASE IN HOUSEHOLD INCOME » INCREASE IN DEMAND » INCREASE IN PRICE AND QUANTITY
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The Model Settings
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The starting level of household income is set at £20000.00. The input parameters can range between £15000 to £25000
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