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.

---

Definitions:

Townshend Acts

A series of British laws passed in the late 1760s imposing duties on various goods imported to the American colonies, which sparked widespread protests and contributed to the American Revolutionary War.

Homespun Items

Goods made at home, typically referring to clothing or textiles that are handwoven or crafted, often symbolizing self-reliance or economic protest.

Successfully Resisted

The act of effectively opposing or standing firm against an opposing force or influence.

Non-Importation Movement

an organized effort to stop importing goods from Britain during the American colonial period as a protest against taxes and British regulation.