5. Maria has decided always to spend one-third of her income on clothing a) What is her income elasticity of clothing demand ? b) What is her price elasticity of clothing demand ? c) If Maria's tastes change and she decides to spend only 1/4 of her income on clothing,how does her demand curve change? What is her income elasticity and price elasticity now? Ans: a) Her income elasticity of clothing demand will be 1. This is because since she is spending a constant fraction of her inco ... ...