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A worker goes out to eat at a restaurant once a week. He gets a 25% raise at work and decides to eat out twice
A worker goes out to eat at a restaurant once a week. He gets a 25% raise at work and decides to eat out twice as much as before and cut back on the number of frozen lasagna dinners fromonce a week to once every other week. What is hisincome elasticity of demand (EI) for restaurant dinners and how do we interpret it?
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