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As the family income increases the percentage of income expended on house rent:
Question



As the family income increases the percentage of income expended on house rent:

A.

Decreases

B.

Increases

C.

Remains same

D.

Varies

Correct option is C

In certain cases, the percentage of income expended on house rent can remain the same as income increases, particularly in societies or situations where housing costs are fixed or regulated in such a way that they are not directly tied to the family's income. This might occur if families continue to rent in the same housing market or live in areas where rent does not increase proportionally with income, or if they prefer to maintain a similar living standard regardless of changes in income.
For example, some families may choose not to upgrade their living situation despite an increase in income and instead continue to spend a similar portion of their income on housing costs, especially if they prioritize saving or spending on other needs.
In many cases, a family's decision to maintain a certain lifestyle (such as staying in a modest home or renting in the same area) can result in the percentage of income spent on rent remaining stable even as their income grows.
Information Booster:
In some economic or cultural contexts, as family income rises, individuals may not immediately adjust their housing expenditure. For example:
· Some families may continue to live in the same home, or in similar housing, even as their income increases, thereby spending the same percentage of their higher income on rent.
· This may occur when rent prices are relatively fixed or capped in a given region, and families choose not to change their living arrangements.
· Social factors can also play a role: individuals may opt for a lifestyle that does not drastically change with an increase in income, opting to save or invest more rather than upgrading their housing situation.
Additional Knowledge on Incorrect Options:
· Decreases (a): This is the most common trend in many cases, as people generally tend to spend a smaller percentage of their increased income on housing, but this isn't universal. Option (c) reflects a specific scenario where it remains the same, which can be true for certain families or in particular circumstances.
· Increases (b): This is rare because as families earn more, they generally don't spend a higher percentage on housing. However, some might spend more absolutely, but typically the percentage does not increase.
· Varies (d): The percentage can vary based on personal choices or market conditions, but the most common trend across the general population is that it remains the same or decreases.

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