Question 11 A supermarket has estimated values of the income elasticity of demand for some of its products as shown in the table below. Product A Eggs B Milk C D Fruit Cheese Eggs Milk Cheese Fruit Given this information, which product is most likely to be considered a necessity? Income elasticity of demand 0.15 0.60 1.00 1.70
Question 11 A supermarket has estimated values of the income elasticity of demand for some of its products as shown in the table below. Product A Eggs B Milk C D Fruit Cheese Eggs Milk Cheese Fruit Given this information, which product is most likely to be considered a necessity? Income elasticity of demand 0.15 0.60 1.00 1.70
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 11
A supermarket has estimated values of the income elasticity of demand for
some of its products as shown in the table below.
A Eggs
B Milk
C
D
Product
Cheese
Fruit
Eggs
Milk
Cheese
Fruit
Given this information, which product is most likely to be considered a
necessity?
Income elasticity
of demand
0.15
0.60
1.00
1.70
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