Given the typical income elasticity for food,a 10 percent increase in income will lead to
A)An increase in food demand of more than 10 percent.
B)A decrease in food demand of less than 10 percent.
C)An increase in food demand of 10 percent.
D)An increase in food demand of less than 10 percent.

Question

Quizplus · Accepted Answer

The typical income elasticity for food is less than 1, meaning that a 10 percent increase in income will lead to an increase in food demand, but the increase will be less than 10 percent.

Given the Typical Income Elasticity for Food,a 10 Percent Increase