Solved

Which of the Following Statements Correctly Characterizes the Elasticity of Demand

Question 41

Multiple Choice

Which of the following statements correctly characterizes the elasticity of demand for food?


A) While food demand is not very responsive to changes in price, increases in income produce big increases in the demand for food.
B) As income increases, the quantity demanded of food decreases.
C) If the price of food falls by 5 percent, quantity demanded will rise by less than 5 percent.
D) People consume the same amount of food regardless of the price of food.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents