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JAne spends all her income on hot dogs and caviar Her demand curve for caviar is inelastic at all prices for caviar Unfortunately the accident at Chernobyl has caused the supply of caviar to fall an?
Wiki User
∙ 11y ago
Since her demand for caviar is inelastic at all prices, she continues to consume it at a higher price, spending a greater share of her income on caviar. She therefore spends a smaller portion of her income on Hot Dogs. Assuming hot dog prices do not fall due to the accident, her quantity consumed of hot dogs would also fall.
Wiki User
∙ 11y ago
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um.....yes?
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