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What will happen to the demand for wheat

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Reference no: EM132186153

The income elasticity for most staple foods, such as wheat, is known to be between zero and one.

  1. As incomes rise over time, what will happen to the demand for wheat?
  2. What will happen to the quantity of wheat purchased by consumers?
  3. What will happen to the percentage of their budgets that consumers spend on wheat?
  4. All other things equal, are farmers likely to be relatively better off or relatively worse off in periods of rising incomes?

Reference no: EM132186153

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