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Which of the following statements are supported by the numbers shown in the table titled "Selected Income Elasticities of Demand" Selected Income Elasticities of Demand for Cereals and Livestock

Which of the following statements are supported by the numbers shown in the table titled "Selected Income Elasticities of Demand" Selected Income Elasticities of Demand for Cereals and Livestock Products in Various Countries Country Cereals Beef Pork Poultry Cow's Eggs Milk Brazil 0.15 0.58 0.29 0.64 0.45 0.55 Egypt 0.04 0.80 0.70 1.30 1.00 0.70 India 0.25 1.20 0.80 1.50 0.80 1.00 Indonesia 0.29 1.50 0.80 1.50 0.20 1.20 Kenya 0.35 1.00 0.70 1.20 0.59 1.30 South Korea 0.09 0.80 0.73 1.00 0.49 0.80 Malaysia 0.14 0.49 0.41 0.87 0.57 0.73 Mexico -0.10 0.59 0.49 0.93 0.68 0.59 Nigeria 0.17 1.20 1.00 1.00 1.20 1.20 Philippines 0.22 1.20 0.93 1.00 1.50 1.00 Thailand 0.06 0.56 0.47 0.50 0.80 0.50 Turkey -0.05 0.80 0.50 1.20 0.80 0.80 Source: Norton and Alwang Introduction to Economics of Agricultural Development, p. 43.
The number 0.06 for cereals in Thailand means that as income increases by 10%, people in Thailand will buy 6% more cereals Elasticities less than one indicate that the share of income spent on a particular food falls as income rises The low elasticities for cereals compared to meat products demonstrates Bennett's law In all countries, people are more sensitive to changes in the price of eggs than they are to changes in the price of cereals An elasticity that is greater than one (Beef in Nigeria, for example) indicates that people spend a greater share of their income on that food as income increases The number -0.10 for cereals in Mexico means that Mexicans with more money buy less cereals than Mexicans with less money Poor countries (Kenya and Nigeria) exhibit greater income elasticities on average than richer countries (Brazil, South Korea)

Question 3 5 pts Which of the following statements are supported by the numbers shown in the table titled Selected Income ElThe number 0.06 for cereals in Thailand means that as income increases by 10%, people in Thailand will buy 6% more cereals El

Jun 10 2021 View more View Less

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