Maria Has Decided To Always Spend One-Third Of Her Income On Clothing.

(Correct Answer Below)

Maria Has Decided To Always Spend One-Third Of Her Income On Clothing.

Her income elasticity of clothing demand is____________ 1. Her price elasticity of clothing demand is____________ 1. Suppose Maria's tastes change and she decides to spend only one-fourth of her income on clothing. This causes Maria's demand for clothing to_____________. Now her income elasticity of clothing demand is_________ 1, and her price elasticity of clothing demand is___________ 1.
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