If consumers always spend 15 percent of their income on food, then the income elasticity of demand for food is
A) 1.50.
B) 1.15.
C) 15
D) 0.15.
E) 1.00.

Name: If consumers always spend 15 percent of their income on food, then the income elasticity of demand for food is A) 1.50. B) 1.15. C) 15 D) 0.15. E) 1.00.
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Question

Quizplus · Accepted Answer

The income elasticity of demand is 1.00 when the proportion of income spent on a good remains constant as income changes.

If Consumers Always Spend 15 Percent of Their Income on Food