Give proper explanation of the correct option and proper explanation of the incorrect options as well.Hand written solution is not allowed. PosttestWhich conclusion is supported by the graph?People in the highest quintile spend aboutA) $4,000 on food or about 30% of their income.People in the lowest quintile spend half asmuch on food as people in the highest quintile.B)C)As their incomes rise, people spend a greaterportion of their total income on food.As their incomes rise, people spend more onD) food, but it represents a smaller portion oftheir income.Average annual food spending ($)Food Spending and Percent of IncomeSpent on Food3516,000-14,000--30Spending (left axis)12,000-Percent (right axis)2510,000-208,000-156,000-104,000-2,000-0LowestSecond MiddleFourthHighestIncome quintileSource: USDA, Economic Research Service using data from U.S. Bureauof Labor Statistics. Consumer Expenditure Survey, 2018.Percent of income spent on food

The relationship between income and spending is multifaceted and prompted by using a combination of…

Which conclusion is supported by the graph? People in the highest quintile spend about A) $4,000 on food or about 30% of their income. People in the lowest quintile spend half as much on food as people in the highest quintile. As their incomes rise, people spend a greater portion of their total income on food. B) As their incomes rise, people spend more on D) food, but it represents a smaller portion of their income. 16,000- 14,000- 12,000- 10,000- 8,000- Average annual food spending ($) 6,000- Food Spending and Percent of Income Spent on Food Spending (left axis) Percent (right axis) 4,000- 2,000- 0 0 Lowest Second Middle Fourth Highest Income quintile 35 222222 10 Percent of income spent on food

Which conclusion is supported by the graph? People in the highest quintile spend about A) $4,000 on food or about 30% of their income. People in the lowest quintile spend half as much on food as people in the highest quintile. As their incomes rise, people spend a greater portion of their total income on food. B) As their incomes rise, people spend more on D) food, but it represents a smaller portion of their income. 16,000- 14,000- 12,000- 10,000- 8,000- Average annual food spending ($) 6,000- Food Spending and Percent of Income Spent on Food Spending (left axis) Percent (right axis) 4,000- 2,000- 0 0 Lowest Second Middle Fourth Highest Income quintile 35 222222 10 Percent of income spent on food

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Give proper explanation of the correct option and proper explanation of the incorrect options as well. Hand written solution is not allowed.

Posttest
Which conclusion is supported by the graph?
People in the highest quintile spend about
A) $4,000 on food or about 30% of their income.
People in the lowest quintile spend half as
much on food as people in the highest quintile.
B)
C)
As their incomes rise, people spend a greater
portion of their total income on food.
As their incomes rise, people spend more on
D) food, but it represents a smaller portion of
their income.
Average annual food spending ($)
Food Spending and Percent of Income
Spent on Food
35
16,000-
14,000-
-30
Spending (left axis)
12,000-
Percent (right axis)
25
10,000-
20
8,000-
15
6,000-
10
4,000-
2,000-
0
Lowest
Second Middle
Fourth
Highest
Income quintile
Source: USDA, Economic Research Service using data from U.S. Bureau
of Labor Statistics. Consumer Expenditure Survey, 2018.
Percent of income spent on food

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