The income elasticities of demand for movies, dental services, and clothing have been estimated to be +

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The income elasticities of demand for movies, dental services, and clothing have been estimated to be + 3.4, + 1, and + .5, respectively. Interpret these coefficients. What does it mean if an income elasticity coefficient is negative?

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:43 AM

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The income elasticities of demand for movies, dental services, and clothing have been estimated to be +

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All are normal goods x income and quantity demanded move in the same direct...View the full answer

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