Question

Mr. Brennan wins the lottery. What will happen to his demand for bigger houses?

Answer 1

Answer: Increase

Explanation:

There is an economic notion that holds that a person's preference is independent of their current income. This means that given more income, people will generally demand more expensive things.

This is the case here. Mr. Brennan may not have been able to afford big houses before winning the lottery but now that he can, he would probably want more big houses. This translates to an increase in his demand for them.