The Cost of Basics Like Milk, Bread, Potatoes and Bananas

question 25

Multiple Choice

The cost of basics like milk, bread, potatoes and bananas has jumped in the past year, forcing families to nix luxuries, steer away from organic goods and buy more house brands. What does customer Elize Joseph mean when she said, "You can cut back on buying clothes and shoes, but you can't do that with food; you have to eat"?

• A) The price elasticity of demand for food is higher than for clothes.
• B) The price elasticity of demand for food is lower than for clothes.
• C) Income elasticity of demand for food is positive.
• D) Income elasticity of demand for food is negative.

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Self-regulation

The process by which individuals control their behavior, emotions, and thoughts towards achieving long-term goals.

Rainbow Preschool

A preschool that emphasizes inclusiveness and often incorporates educational content celebrating diversity.

Low-income Families

Households with income levels significantly below the national average, often facing financial stress and limited access to resources.