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Research indicates that when workers get a 5% increase in income, they spend about 60% more on air travel and vacations, and only about 4%
Research indicates that when workers get a 5% increase in income, they spend about 60% more on air travel and vacations, and only about 4% more on food items. Explain which economic law is being confirmed by this research? 3 Marks Calculate the income elasticity Ei for air travel and vacations. 1 Mark Calculate the income elasticity Ei for food
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Economics Today
Authors: Roger LeRoy Miller
16th edition
132554615, 978-0132554619
