If Real Income Rises in the Economy And,at the Same

Multiple Choice

If real income rises in the economy and,at the same time,productivity in the agriculture sector rises,too,then it follows that the demand for food will

A) rise (assuming that income elasticity of demand for food is greater than 1) and the supply of food will remain constant.
B) rise (assuming that income elasticity of demand for food is greater than 0) and the supply of food will increase,too.
C) fall (assuming that income elasticity of demand for food is greater than 1) and the supply of food will fall,too.
D) fall (assuming that income elasticity of demand for food is equal to 1) and the supply of food will rise.
E) none of the above