The Income Elasticity of Demand for Low-Quality Beef Is -2

Multiple Choice

The income elasticity of demand for low-quality beef is -2. Thus, a 5% increase in the quantity of low-quality beef demanded

A) is the result of a decrease in income of 2.5%.
B) is the result of a decrease in income of 10%.
C) is the result of an increase in income of 2.5%.
D) is unrelated to any change in income.