The Income Elasticity of Demand for Ground Beef Has Been

Multiple Choice

The income elasticity of demand for ground beef has been estimated to be -0.197.If income falls by 10 percent in a period, how will that affect total expenditures on ground beef in that period, all other things unchanged?

A) total expenditures will rise
B) total expenditures will remain unchanged
C) total expenditures will fall
D) not enough information is given to answer the question