If Income Elasticity of Demand for Food Is 1

question 43

Multiple Choice

If income elasticity of demand for food is 1.55 it follows that

• A)a 10 percent rise in the price of food lowers the quantity demanded of food by 15.5 percent.
• B)if income rises by 10 percent,consumption of food rises by 15.5 percent.
• C)if income rises by 10 percent,consumption of food falls by 15.5 percent.
• D)a 1 percent rise in the price of food decreases the quantity demanded of food by 1.55 percent.
• E)none of the above

---

Definitions:

Combine

The act of joining or merging two or more items into a single entity, often used in mathematical operations like addition or combination.

Simplify

The process of making an expression easier to understand or solve by reducing it to its most basic form.

Combine

To merge or unite two or more items or quantities to form a single entity.

Simplify

The process of altering an expression to make it easier to understand or solve by combining like terms or using properties of operations.