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What Income Elasticities Do Food and Clothing Tend to Have,and

Question 24

Multiple Choice

What income elasticities do food and clothing tend to have,and why


A) small income elasticities because consumers, regardless of their incomes, choose to buy these goods
B) small income elasticities because consumers will buy proportionately more at higher income levels than they will at low income levels
C) large income elasticities because they are necessities
D) large income elasticities because they are relatively cheap

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