The Income Elasticity of Demand for Ground Beef Has Been

question 205

Multiple Choice

The income elasticity of demand for ground beef has been estimated to be -0.197.If income falls by 20 percent in a period, how will that affect demand for ground beef in that period, all other things unchanged?

• A) demand will increase by less than 1.97 percent
• B) demand will increase by almost 4 percent
• C) demand will decrease by almost 4 percent
• D) demand won't change, but quantity demanded will increase.

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Definitions:

Condition Concurrent

A situation in a contract wherein the parties involved must perform their respective obligations at the same time.

Washing

Typically refers to cleaning something by immersing and agitating it in water or another liquid.

Conditional Contract

An agreement that becomes enforceable only after certain conditions are met or fulfilled.

Condition Precedent

In a contract, an event that must occur in order for a party’s duty to arise.