34. Estimates of income elasticity of demand for selected food items in Cyprus and the Maldives. Product Cereals e.g. rice Fish Oils and fats Cyprus -0.12 0.37 0.00 Maldives It may be deduced from the data in the table that 0.50 0.64 0.52 (Source: http://www.ers.usda.gov/Data/International Food Demand) A the demand for fish is income inelastic in both countries B the demand for oils and fats is perfectly income elastic in Cyprus C cereals are a normal good in Cyprus but an inferior good in the Maldives D the demand for oils and fats is more responsive than the demand for fish to a change in income in the Maldives

34. Estimates of income elasticity of demand for selected food items in Cyprus and the Maldives. Product Cereals e.g. rice Fish Oils and fats Cyprus -0.12 0.37 0.00 Maldives It may be deduced from the data in the table that 0.50 0.64 0.52 (Source: http://www.ers.usda.gov/Data/International Food Demand) A the demand for fish is income inelastic in both countries B the demand for oils and fats is perfectly income elastic in Cyprus C cereals are a normal good in Cyprus but an inferior good in the Maldives D the demand for oils and fats is more responsive than the demand for fish to a change in income in the Maldives

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6CQQ: Over time, technological advance increases consumers incomes and reduces the price of smartphones....

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