The Income Elasticity of Demand for Ground Beef Has Been

question 117

Multiple Choice

The income elasticity of demand for ground beef has been estimated to be -0.197.If income falls by 10 percent in a period, how will that affect total expenditures on ground beef in that period, all other things unchanged?

• A) total expenditures will rise
• B) total expenditures will remain unchanged
• C) total expenditures will fall
• D) not enough information is given to answer the question

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