Estimates of income elasticity of demand for selected products in the UK Income elasticity of demand 0.7 0.9 Food item Fish Milk and Eggs Meat 1.2 (Source: https://www.gov.uk/government/publications/food-and-drink-elasticities) Other things being equal, the data in the table suggest that: A The demand for milk and eggs is price inelastic B Meat and fish have a positive cross elasticity of demand C Fish, milk and eggs are all inferior goods D Meat has a higher income elasticity of demand than fish

Estimates of income elasticity of demand for selected products in the UK Income elasticity of demand 0.7 0.9 Food item Fish Milk and Eggs Meat 1.2 (Source: https://www.gov.uk/government/publications/food-and-drink-elasticities) Other things being equal, the data in the table suggest that: A The demand for milk and eggs is price inelastic B Meat and fish have a positive cross elasticity of demand C Fish, milk and eggs are all inferior goods D Meat has a higher income elasticity of demand than fish

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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