The lower the level of income in a country,the
A) less income elastic is the demand for food.
B) more income elastic is the demand for food.
C) more negative the income elasticity of the demand for food.
D) Both answers A and C are correct.
E) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

In lower-income countries, as income increases, people tend to spend a larger proportion of their additional income on food, making the demand for food more income elastic.

The Lower the Level of Income in a Country,the