The Income Elasticity of Demand for Food Is Roughly 1

Multiple Choice

The income elasticity of demand for food is roughly 1. A consumer's monthly income is $2,000, of which 20 percent is spent on food. If the income of this consumer doubles, the amount she'll spend on food will be

A) $400 per month.
B) $500 per month.
C) $800 per month.
D) $1,000 per month.