A worker eats at a restaurant once a week. He then gets a 25% raise. As a
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Question:
A worker eats at a restaurant once a week. He then gets a 25% raise. As a result, he decides to eat out twice as much as before and cut back on the number of frozen pizza he eats from two every week to one every week. Determine the income elasticity of demand for eating at a restaurant and for eating frozen pizza. Determine if either is a normal good or an inferior good. You must show your work to receive full credit.
Related Book For
Statistics The Exploration & Analysis of Data
ISBN: 978-1133164135
7th edition
Authors: Roxy Peck, Jay L. Devore
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