What is income elasticity for frozen meals

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John’s dining out with his wife during the week more often. Previously they dined out twice a week, but after getting his new job, they are now dining out 5 times per week. On the other hand, they noticed that they are now purchasing 10 frozen meals per week, whereas they were purchasing 20 frozen meals per week before John got his new job. a) What is John’s income elasticity for dining out? b) What does this income elasticity tell you? What is the interpretation of the number you calculate in part (a) c) What is John’s income elasticity for frozen meals? d) What does this income elasticity tell you? What is the interpretation of the number you calculate in part (c)

Reference no: EM131082052

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