Give proper explanation of the correct option and proper explanation of the incorrect options as well.Hand written solution is not allowed. PosttestWhich conclusion is supported by the graph?People in the highest quintile spend aboutA) $4,000 on food or about 30% of their income.People in the lowest quintile spend half asmuch on food as people in the highest quintile.B)C)As their incomes rise, people spend a greaterportion of their total income on food.As their incomes rise, people spend more onD) food, but it represents a smaller portion oftheir income.Average annual food spending ($)Food Spending and Percent of IncomeSpent on Food3516,000-14,000--30Spending (left axis)12,000-Percent (right axis)2510,000-208,000-156,000-104,000-2,000-0LowestSecond MiddleFourthHighestIncome quintileSource: USDA, Economic Research Service using data from U.S. Bureauof Labor Statistics. Consumer Expenditure Survey, 2018.Percent of income spent on food

The relationship between income and spending is multifaceted and prompted by using a combination of…

Which conclusion is supported by the graph? People in the highest quintile spend about A) $4,000 on food or about 30% of their income. People in the lowest quintile spend half as much on food as people in the highest quintile. As their incomes rise, people spend a greater portion of their total income on food. B) As their incomes rise, people spend more on D) food, but it represents a smaller portion of their income. 16,000- 14,000- 12,000- 10,000- 8,000- Average annual food spending ($) 6,000- Food Spending and Percent of Income Spent on Food Spending (left axis) Percent (right axis) 4,000- 2,000- 0 0 Lowest Second Middle Fourth Highest Income quintile 35 222222 10 Percent of income spent on food

Which conclusion is supported by the graph? People in the highest quintile spend about A) $4,000 on food or about 30% of their income. People in the lowest quintile spend half as much on food as people in the highest quintile. As their incomes rise, people spend a greater portion of their total income on food. B) As their incomes rise, people spend more on D) food, but it represents a smaller portion of their income. 16,000- 14,000- 12,000- 10,000- 8,000- Average annual food spending ($) 6,000- Food Spending and Percent of Income Spent on Food Spending (left axis) Percent (right axis) 4,000- 2,000- 0 0 Lowest Second Middle Fourth Highest Income quintile 35 222222 10 Percent of income spent on food

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 2SQP

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