In Table 2, the price elasticity of demand for Kellogg’s Corn Flakes includes a wide range of estimates. It turns out one end of the range is observed for lowincome households, while the other is...

In Table 2, the price elasticity of demand for Kellogg’s

Corn Flakes includes a wide range of estimates. It

turns out one end of the range is observed for lowincome households, while the other is observed for

high-income households. Identify which end of the

range most likely corresponds to which type of

household, and explain briefly. [Hint: It has to do

with one of the determinants of elasticity.]