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Jimmy's income is $300 per week. At a price of $7 per sandwich, Jimmy buys 6 sandwiches. Jimmy's income increases to $360 per week and
Jimmy's income is $300 per week. At a price of $7 per sandwich, Jimmy buys 6 sandwiches. Jimmy's income increases to $360 per week and Timmy's consumption of sandwiches increases to 9. What is Timmy's income elasticity of demand for sandwiches? (use the midpoint formula for your calculation)
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