The proportion used for food in building the United Kingdom’s Retail Price Index dropped from 16.7% in 1987 to 11.8% in 2011. What might account for this?
- AThe average price of food decreased by 4.9% points between 1987 and 2011.
- BThe demand for food is price inelastic.
- CThe income elasticity of the demand for food is less than one.
- DThere was an increase in the relative price of food over the period.