The Income Elasticity of Demand for Peaches Has Been Estimated

question 122

Multiple Choice

The income elasticity of demand for peaches has been estimated to be 1.43.If income grows by 15 percent in a period, how will that affect total expenditures on peaches in that period, all other things unchanged?

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

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Definitions:

Identical Twins

Twins who develop from a single zygote that splits and forms two embryos, sharing 100% of their DNA.

Fraternal Twins

Siblings who are born at the same time but have developed from two different eggs fertilized by two different sperm, resulting in genetically unique individuals.

Adoption Studies

Research studies that compare biological and adoptive relatives to understand the influence of genetics and environment on traits or disorders.

Environmental Factors

External elements such as social, political, and ecological influences that can affect an individual's development and behavior.