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What would you expect to happen to spending on food at home and spending on food in restaurants during a decline in economic activity? How would income elasticity of demand help explain these changes?

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Related questions

1. Would you expect the price elasticity of demand to be larger in the market for all ice cream or the market for vanilla ice cream? Would you expect the price elasticity of supply to be larger in the market for all ice cream or the market for vanilla ice cream? Be sure to explain your answers.

2. Economists have observed that spending on restaurant meals declines more during economic downturns than does spending on food to be eaten at home. How might the concept of elasticity help to explain this phenomenon?

eonomists have observed that spending on restaurant meals declines more during economic downturns than does spending on food to be eaten at home. How might the concept of elasticity help to explain this phenomenon ?

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