Two out of three Americans own a pet—almost half own a dog and a third a cat—and pet ownership is projected to grow. Households have spent more on pets every year through recessions and booms, growing from $17 billion in 1994 to near $63 billion in 2016. People are clearly willing to pay pet expenses even in hard times, and there’s no reason to expect that to change in the next recession.

a. What does this news clip imply about the income elasticity of demand for pet food and pet care products?

b. Would the income elasticity of demand for pet food and pet care products be greater or less than 1? Explain.