If We Assume That the Income Elasticity of Demand for Food

question 26

Multiple Choice

If we assume that the income elasticity of demand for food has been around 0.2 and that agricultural producers have become increasingly more productive,we can conclude that

• A)prices of food have increased.
• B)supply increases have been less than demand decreases.
• C)as consumers' real incomes have been increasing over the years,they have been spending absolutely less on food.
• D)prices of food have been stable.
• E)none of the above

---

Definitions:

Objectivity

The state or quality of being true even outside of a subject's individual biases, interpretations, feelings, and imaginings.

Retaliation

The action of returning a military attack; counterattack or the act of seeking revenge upon another.

Misconduct

Improper or unethical behavior by an individual, particularly in a professional context, that violates established norms or regulations.

Ethical Cultures

The collective ethos and ethical orientation that characterize the environment of a business organization, influencing its decision-making and relationships.