If the income elasticity of hamburgers is -0.8 for John,then his share of income spent on hamburgers will ________ when his income increases.
A)increase
B)decrease
C)remain the same
D)Not enough information

Question

Quizplus · Accepted Answer

The negative value of income elasticity (-0.8) indicates that hamburgers are a normal good for John, meaning that as his income increases, his demand for hamburgers decreases. Therefore, his share of income spent on hamburgers will decrease as his income increases.

If the Income Elasticity of Hamburgers Is -0