Question is iii (4 points)

The table below shows data for price elasticity of demand and income elasticity of demand for seven product groups in Argentina in 2008. (iii) As a result of the forecasted average Argentinean household income for 2015, Food and Clothing Housing House Health Transport Recreation calculated in part (ii), explain what you would expect to happen to the proportion of Beverages and furnishing care income Argentinean households spend on health care. footwear Price elasticity of -0.49 -0.71 -0.79 -0.77 -0.96 -0.84 -1.03 demand Income elasticity of 0.67 0.96 1.07 1.05 1.31 1.16 1.41 demand Percentage of income spent by the average 22% 5% 18% 6% 9% 16% 9% household on each product group [Source: adapted from http:/www.ers.usda.gov/publications, 23 July 2011. U. S. Department of Agriculture] X There are concerns about rising food prices and their impact on households. Economists have forecast that rising food prices may have a negative effect on the demand for goods in other product groups. (a) Outline one reason why (i) the price elasticity of demand figures are negative