As peoples incomes rise, why will they spend an increasing portion of their incomes on goods with
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As people’s incomes rise, why will they spend an increasing portion of their incomes on goods with income elasticities greater than 1 (e.g., movie tickets) and a decreasing portion of their incomes on goods with income elasticities less than 1 (e.g., food)?
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An income elasticity of 1 would mean that people would spend the same fraction or share of their ...View the full answer
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