You Are the Manager of a Supermarket,and You Know That

Multiple Choice

You are the manager of a supermarket,and you know that the income elasticity of peanut butter is exactly −0.7.Due to the economic recession,you expect incomes to drop by 15 percent next year.How should you adjust your purchase of peanut butter?

A) Buy 10.5 percent more peanut butter.
B) Buy 2.14 percent more peanut butter.
C) Buy 6.2 percent less peanut butter.
D) Buy 9.8 percent less peanut butter.