The Income Elasticity of Demand for Food Is Roughly 1

question 381

Multiple Choice

The income elasticity of demand for food is roughly 1. Suppose a consumer's monthly income is $2,000, of which 20 percent is spent on food. If the income of this consumer doubles, the amount she'll spend on food will be

• A)$400 per month.
• B)$500 per month.
• C)$800 per month.
• D)$1,000 per month.

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Definitions:

Client's Motivation

The driving force behind a client's willingness to strive for and achieve their personal objectives.

Counseling Session

A structured meeting between a counselor and a client aimed at addressing personal or psychological issues.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, traveling, and engaging in recreational pursuits.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.