Can standard users install applications to their local home directory?

I want to setup multiple user accounts on my machine. I've been doing some tests and it looks like when you try to install an application from the App Store it requires an admin user name and password, and then the App Store installs the application to the '/Application' directory.
Is it possible?
(1) To set up the system in a why that all users install their applications to '~/Applications' (their home directory) without the need for admin passwords.
(2) If an admin user wants to give access to a application to everyone on the system it is installed to '/Applications'
Thanks in advance.

The default installation is in the main Apps folder. This can't be changed. If you want an app in the user account Apps folder, the user should drag it to that folder when installation is complete.

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