Elasticity and engel aggregation

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Reference no: EM13737831

Elasticity/Engel Aggregation:

Define ex,I and ey,I to be income elasticities for goods x and y. Define sx and sy to be income shares for x and y.

Show that Engel aggregation holds: ex,ISx + ey,ISy = 1.

Reference no: EM13737831

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