Suppose the "Poor" and "Rich" Have Identical Demand Functions for Good

question 12

Multiple Choice

Suppose the "poor" and "rich" have identical demand functions for good X but only differ in income (I) .

At a given price of X,the price elasticity of their individual demand curves is such that

• A) the rich person's demand is more elastic than the poor person's.
• B) the poor person's demand is more elastic than the rich person's.
• C) the poor person's demand is as elastic as the rich person's.
• D) the rich person's demand is as elastic as the poor person's.