During the postwar period, changing patterns of consumer demand led to changes in the distribution of jobs in the US economy. In particular, the income elasticity of demand for many consumer products was ____________ the income elasticity of demand for services, such as medical care and insurance.

Question

During the postwar period, changing patterns of consumer demand led to changes in the distribution of jobs in the US economy.  In particular, the income elasticity of demand for many consumer products was ____________ the income elasticity of demand for services, such as medical care and insurance.

Quizplus · Accepted Answer

The income elasticity of demand for many consumer products was less than the income elasticity of demand for services such as medical care and insurance. This means that as incomes rose, people tended to spend a larger proportion of their additional income on services compared to consumer products.

During the Postwar Period, Changing Patterns of Consumer Demand Led