Question
The income elasticity of demand for food is roughly 1. Suppose a consumer's monthly income is $4,800, of which 10 percent is spent on food.
The income elasticity of demand for food is roughly 1. Suppose a consumer's monthly income is $4,800, of which 10 percent is spent on food. If the income of this consumer doubles, the amount she'll spend on food will be
Multiple Choice
- $480 per month.
- $750 per month.
- $960 per month.
- $1,050 per month.
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Fundamentals of Managerial Economics
Authors: Mark Hirschey
9th edition
324584830, 978-0324588781, 032458878X, 978-0324584837
