Use the table below to answer the following question.
Table 4.1.2
-Suppose a rise of 8 percent in the price of bison meat in Saskatchewan reduces the consumption of bison meat by 24 percent.Following the price change,consumers spend
A)more of their income on bison.
B)the same amount of their income on bison as before.
C)less of their income on bison.
D)more on products that are complements of bison.
E)zero dollars on bison meat.

Question

Use the table below to answer the following question.
Table 4.1.2 
-Suppose a rise of 8 percent in the price of bison meat in Saskatchewan reduces the consumption of bison meat by 24 percent.Following the price change,consumers spend
A)more of their income on bison. 
B)the same amount of their income on bison as before. 
C)less of their income on bison. 
D)more on products that are complements of bison. 
E)zero dollars on bison meat.

Quizplus · Accepted Answer

When the price of bison meat increases by 8 percent, the consumption reduces by 24 percent. This means that the demand for bison meat is elastic. As a result, consumers will spend less on bison meat, which means less of their income will be used to purchase bison meat. So, the correct answer is option C: less of their income on bison.

Use the Table Below to Answer the Following Question