The Income Elasticity of Demand for Peaches Has Been Estimated

question 122

Multiple Choice

The income elasticity of demand for peaches has been estimated to be 1.43.If income grows by 15 percent in a period, how will that affect total expenditures on peaches in that period, all other things unchanged?

• A) total expenditures will rise
• B) total expenditures will fall
• C) total expenditures will remain unchanged
• D) not enough information is given to answer the question

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Definitions:

Healthy People 2020

A set of health objectives for the nation to achieve over the first decade of the 21st century, aimed at improving the health of all Americans.

Health Disparities

Preventable differences in the burden of disease, injury, violence, or opportunities to achieve optimal health that are experienced by socially and economically disadvantaged populations.

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