Suppose You Learn That in 1,900, Households Spent About 40

question 23

Multiple Choice

Suppose you learn that in 1,900, households spent about 40 percent of their budget on food, and today, they spend about 10 percent of their budget of food. All else equal, this suggests that the price elasticity of demand for food:

• A)is probably negative.
• B)has always been very high.
• C)is probably lower now than it was in 1,900.
• D)is probably higher now than it was in 1,900.

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Definitions:

Arizona

A state located in the southwestern region of the United States, known for its desert climate, the Grand Canyon, and rich Native American history.

Distribution Center

A warehouse or specialized facility where goods are stored, managed, and distributed to retailers or customers.

Washington

A state in the Pacific Northwest region of the United States, known for its large forest areas, the Cascade Range, and being the home of the city of Seattle.

Television Sets

Electronic devices designed to receive and display broadcasts of moving images along with sound, creating a visual entertainment medium.