Question

Suppose Austin, Texas, is hit by a tornado that destroys 25 percent of the housing in the area. Would you expect the total expenditure on housing after the tornado to be greater than, less than, or equal to what it was before the tornado

Answer 1

greater than what it was before

Explanation:

Remember, a tornado usually causes significant structural damages to houses within its area of impact., and this requires running expenses to repair the damage.

Hence, since the term expenditure, also implies expenses; we can expect the total expenditure on housing after the tornado to be greater than what it was before the tornado since families would be paying for repairs.