Its an important tradition in the Santos family that they eat the same meal at their favorite

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It’s an important tradition in the Santos family that they eat the same meal at their favorite restaurant every Sunday. By contrast, the Chen family spends exactly $50 for their Sunday meal at whatever restaurant sounds best.

a. Which family has a more elastic demand for restaurant food?

b. Which family has a unit elastic demand for restaurant food? (Hint: How would each family respond to an increase in food prices?) pg36

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Modern Principles Of Economics

ISBN: 9781429239974

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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