Several studies, some cited in the text, show that the price elasticities of demand for basic foods such as corn, potatoes, and milk are consistently
A) inconsistent over time
B) less than one
C) greater than one
D) equal to one
E) highly volatile

Question

Quizplus · Accepted Answer

The price elasticities of demand for basic foods such as corn, potatoes, and milk are consistently less than one, indicating that they are inelastic. This means that a change in price leads to a proportionally smaller change in the quantity demanded, which is typical for essential goods that people need regardless of price changes.

Several Studies, Some Cited in the Text, Show That the Price