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Elasticity: (Please show your steps and calculation- use Arc elasticity) In year one, Mike's income was $52,000 and went to the steak house restaurants for
Elasticity: (Please show your steps and calculation- use Arc elasticity)
In year one, Mike's income was $52,000 and went to the steak house restaurants for dinner a total of 26 times. The next year, Mike's income increases to $68,000 and he ate diners at steak house restaurant for 32. Assume the quality of movies did not change.
a. What is Mike's income elasticity of demand for dinner at steak house restaurants?
b. What type of good is a dinner eating at a steak house restaurant for Joe?
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