... due to the relatively low prices of strawberries, an increase in ones income may not mean that people suddenly feel the need to buy strawberries, but may be more persuaded to buy a brand new car. The figure 0.8 means that if incomes were to increase by 5% then the demand for fresh strawberries will increase by 4%. For example, Mrs Jones has an income of £20,000 per annum, she allows herself £100 for the weekly shop, this generally includes all the necessary goods for the week, she likes strawberries but usually does not buy them due to a lack of funds, as all the money is spent on goods which are needed for her and her family. Supposing incomes have recently increased by 5% meaning her annual income has gone up to £21,000. This in turn has effected the amount that she can now spend on food shopping. After ...

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