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If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of fast food by 20 percent, for these consumers, the income elasticity of demand for fast food is 0.5 O fast food is considered an inelastic good fast food is considered an inferior good all of the answer choices are correct.

If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of fast food by 20 percent, for these consumers, the income elasticity of demand for fast food is 0.5 O fast food is considered an inelastic good fast food is considered an inferior good all of the answer choices are correct.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter6: Elasticities
Section: Chapter Questions
Problem 5P
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If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of fast food by 20 percent, for these consumers, the income elasticity of demand for fast food is 0.5 O fast food is considered an inelastic good O fast food is considered an inferior good O all of the answer choices are correct.
Transcribed Image Text:If a 10 percent increase in income induced a group of consumers to reduce their yearly purchases of fast food by 20 percent, for these consumers, the income elasticity of demand for fast food is 0.5 O fast food is considered an inelastic good O fast food is considered an inferior good O all of the answer choices are correct.
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