Last Year When John Graduated and Received a 20 Percent

question 191

Multiple Choice

Last year when John graduated and received a 20 percent pay increase, the average number of restaurant meals he consumed rose from one a week to three a week. Hence his income elasticity for restaurant meals is

• A) 0.50.
• B) -0.50.
• C) 5.00.
• D) -5.00.

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Definitions:

Charles Cooley

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