The lower the level of income in a country, the
A) more income elastic is the demand for food.
B) more negative the income elasticity of the demand for food.
C) less income elastic is the demand for food.
D) Both answers A and C are correct.
E) None of the above is correct.

Question

Quizplus · Accepted Answer

In countries with lower income levels, the demand for food tends to be more income elastic because a larger proportion of any additional income is likely to be spent on food.

The Lower the Level of Income in a Country, the