Explain which family has unit elastic demand for food


It is an important tradition in the Santos family that that they eat the same meal at their favorite restaurant every Sunday. By contrast, the Chen family spends exactly $50 for their Sunday meal at whatever restaurant sounds best.

a) Which family has a more elastic demand for restaurant food?

b) Which family has a unit elastic demand for restaurant food? (Hint: How would each family respond to an increase in food prices?)

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Microeconomics: Explain which family has unit elastic demand for food
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