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.

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Definitions:

Contact Information

A set of data that includes means to communicate with an individual or organization, such as phone number, email address, and physical address.

Selling Point

A distinctive feature or benefit of a product, service, or idea that makes it appealing to potential buyers or users.

Practical Use

The application of an idea, tool, or method in real-life scenarios or everyday situations to solve problems or achieve specific objectives.

Purchase Objections

Purchase objections are reasons or arguments presented by potential buyers indicating why they hesitate or decide not to buy a product or service.