When the Jones family had a monthly income of €4,000, they usually ate out 8 times a month. Now that the couple makes €4,500 a month, they eat out 10 times a month. Compute the couple's income elasticity of demand using the midpoint method. Explain your answer. Is a restaurant meal a normal or inferior good to the couple?

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The Answer of When the Jones family had a monthly income of €4,000, they usually ate out 8 times a month. Now that the couple makes €4,500 a month, they eat out 10 times a month. Compute the couple's income elasticity of demand using the midpoint method. Explain your answer. Is a restaurant meal a normal or inferior good to the couple?

When the Jones Family Had a Monthly Income of €4,000