Which of the Following Statements Correctly Characterizes the Elasticity of Demand

question 17

Multiple Choice

Which of the following statements correctly characterizes the elasticity of demand for food?

• A) While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food.
• B) As income increases, the quantity demanded of food decreases.
• C) If the price of food falls by 5 percent, quantity demanded will rise by less than 5 percent.
• D) People consume the same amount of food regardless of the price of food.

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Definitions:

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