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If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ?
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If consumer always spend 15 percent of their income on food, then the ...
Income Elasticity of Demand for Food
The income elasticity of demand for food is the measurement of how responsive the quantity demanded of food is to a change in income. It is calculated as the percentage change in quantity demanded of food divided by the percentage change in income.
Given that consumers always spend 15 percent of their income on food, we can assume that the income elasticity of demand for food is positive. This is because as income increases, consumers will have more money to spend on food, and as income decreases, they will have less money to spend on food.
Calculating the Income Elasticity of Demand for Food
To calculate the income elasticity of demand for food, we need to know how much the quantity demanded of food changes in response to a change in income. However, we do not have this information, as the question only provides us with the information that consumers always spend 15 percent of their income on food.
Therefore, we cannot accurately determine the income elasticity of demand for food based on the information provided in the question. As a result, none of the answer options provided are correct.
Conclusion
In conclusion, the correct answer to the given question cannot be determined based on the information provided. We need more information about how the quantity demanded of food changes in response to a change in income to accurately determine the income elasticity of demand for food.
The income elasticity of demand for food is the measurement of how responsive the quantity demanded of food is to a change in income. It is calculated as the percentage change in quantity demanded of food divided by the percentage change in income.
Given that consumers always spend 15 percent of their income on food, we can assume that the income elasticity of demand for food is positive. This is because as income increases, consumers will have more money to spend on food, and as income decreases, they will have less money to spend on food.
Calculating the Income Elasticity of Demand for Food
To calculate the income elasticity of demand for food, we need to know how much the quantity demanded of food changes in response to a change in income. However, we do not have this information, as the question only provides us with the information that consumers always spend 15 percent of their income on food.
Therefore, we cannot accurately determine the income elasticity of demand for food based on the information provided in the question. As a result, none of the answer options provided are correct.
Conclusion
In conclusion, the correct answer to the given question cannot be determined based on the information provided. We need more information about how the quantity demanded of food changes in response to a change in income to accurately determine the income elasticity of demand for food.
Community Answer
If consumer always spend 15 percent of their income on food, then the ...
1.00
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If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ?
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If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ?.
If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If consumer always spend 15 percent of their income on food, then the income elasticity of demand for food is . A 1.50 B 1.15 C 1.00 D 0.15 What should be the correct answer ?.
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