Which of the Following Tends to Be True of the Income

question 106

Multiple Choice

Which of the following tends to be true of the income elasticity of demand for food?

• A)It tends to be well below unity only at low levels of income.
• B)It tends to be well above unity only at high levels of income.
• C)At low levels of income,it tends to be fairly high; but as the level of income rises,it tends to fall.
• D)It tends to remain fairly constant at all levels of income.
• E)It is usually zero,since we can only eat so much.

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