The price elasticity of demand for food tends to be

Question

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In richer nations, consumers have more disposable income and food represents a smaller proportion of their budget. As a result, changes in food prices have a relatively small impact on their purchasing decisions, making the price elasticity of demand lower. In poorer nations, food represents a larger proportion of the budget, making changes in food prices have a larger impact on purchasing decisions, resulting in a higher price elasticity of demand.

The Price Elasticity of Demand for Food Tends to Be