Is the demand for a necessity income elastic or incomeinelastic? Is the demand for a luxury income elastic or incomeinelastic?

Is the income elasticity of food higher or lower in countries with low incomes compared to countries with highincomes?

The demand for a necessity is income_______ and the demand for a luxury is income_______.

A.

elastic; elastic

B.

elastic; inelastic

C.

inelastic; inelastic

D.

inelastic; elastic

In countries with lowincomes, such as Tanzania andIndia, the income elasticity of food is

than in countries with highincomes, such as Canada and the United States.