Consider Willie Stark's consumption of steak and bourbon. When he made $120,000 a year he had...

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Consider Willie Stark's consumption of steak and bourbon. When he made $120,000 a year he had 10 steaks and 200 bourbons. Now we make $180,000 and has 9 steaks and 300 bourbons. Find the income elasticities (₁) of steak and bourbon. What do these values tell us? Consider Willie Stark's consumption of steak and bourbon. When he made $120,000 a year he had 10 steaks and 200 bourbons. Now we make $180,000 and has 9 steaks and 300 bourbons. Find the income elasticities (₁) of steak and bourbon. What do these values tell us?

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Income elasticities for Wille Starks steak and bourbon consumption How to calculate and interpret th... View the full answer