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
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 2SQP
Related questions
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc98381d-af41-423b-9e75-16c5f5582ed4%2Fc973f53e-8c03-404d-9bdc-8e22c41228dd%2Fewjupuv_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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