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Good Afternoon! Can you explain this question to me? Suppose you learn that in 1900, households spent about 40 percent of their budget on food,
Good Afternoon!
Can you explain this question to me?
Suppose you learn that in 1900, households spent about 40 percent of their budget on food, and today, they spend about 10 percent of their budget of food. All else equal, this suggests that the price elasticity of demand for food:
A) is probably higher now than it was in 1900.
B) has always been very high.
C) is probably negative.
D) is probably lower now than it was in 1900.
Thank you!
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