A Study of Expenditures on Food in Cities Resulting in the Following

question 8

Multiple Choice

A study of expenditures on food in cities resulting in the following equation: Log E = 0.693 Log Y + 0.224 Log N
Where E is Food Expenditures; Y is total expenditures on goods and services; and N is the size of the family.This evidence implies:

• A) that as total expenditures on goods and services rises,food expenditures falls.
• B) that a one-percent increase in family size increases food expenditures .693%.
• C) that a one-percent increase in family size increases food expenditures .224%.
• D) that a one-percent increase in total expenditures increases food expenditures 1%.
• E) that as family size increases,food expenditures go down.

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