Are restaurant meals a normal or inferior good

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A household's income and restaurant visits are observed at different points in time. The table below describes the pattern.

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(a) Construct a scatter diagram showing quantity on the vertical axis and income on the horizontal axis.

(b) Is there a positive or negative relationship between these variables?

(c) Compute the income elasticity for each income increase, using midpoint values.

(d) Are restaurant meals a normal or inferior good?

Reference no: EM131072988

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