Studies show that,in the United States,
A)price elasticity of demand for agricultural products has hovered around 3.2 for many years.
B)as real income has been increasing,the per-capita demand for food has been decreasing.
C)as real income has been increasing,the per-capita demand for food has been increasing by much more.
D)none of the above

Question

Quizplus · Accepted Answer

Agricultural products typically have a low price elasticity of demand, often less than 1, not 3.2. As real income increases, the per-capita demand for food tends to increase at a decreasing rate, not decrease or increase by much more.

Studies Show That,in the United States