Because the income elasticity of food demand is low,we expect an increase in income to result in
A)A significant increase in the quantity of food demanded.
B)A very slight increase in the quantity of food demanded.
C)A very slight decrease in the quantity of food demanded.

Question

Quizplus · Accepted Answer

The income elasticity of food demand measures the responsiveness of the quantity of food demanded to changes in income. A low income elasticity (typically less than 1) indicates that an increase in income will not result in a significant increase in the quantity of food demanded. In fact, the increase in food demand may be very slight. Therefore, choice B is the best answer.

Because the Income Elasticity of Food Demand Is Low,we Expect