Tonya Consumes 40 Steaks a Year When Her Yearly Income

question 108

Multiple Choice

Tonya consumes 40 steaks a year when her yearly income is $40,000. After her income falls to $35,000 a year, she consumes only 35 steaks a year. Calculate her income elasticity of demand for steaks.

• A) -1
• B) 1
• C) -12.5
• D) 12.5