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 20 percent in a period, how will that affect demand for ground beef in that period, all other things unchanged?

A) demand will increase by less than 1.97 percent
B) demand will increase by almost 4 percent
C) demand will decrease by almost 4 percent
D) demand won't change, but quantity demanded will increase.