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.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2SQ
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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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