In each of the following cases, state whether the income effect, the substation effect, or both are significant. In which cases do they move in the same direction? In opposite directions? Why? Apartment rents have risen dramatically this year. Since rent absorbs a major part of her income, Delia moves to a smaller apartment. Assume that rental housing is a normal good. Since rent is a large share of Delia’s expenditures, the increase in rent generates an income effect, making Delia feel poorer. Since housing is a normal good for Delia, the income and substitution effects move in the same direction, leading her to reduce her consumption of housing by moving to a smaller apartment