Thursday, December 4, 2008

if your income goes up, will you watch tv in the bathroom?

To students of economics:

True or False: Toilets and TV's have a negative cross-price elasticity of demand.

True or False: Bathrooms with TV & toilet(s) have an income elasticity of demand greater than +1.

For an economic analysis of toilets and TV's see: Freakonomics

Answers? Both TRUE.

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