Suppose you graduate from school and get a great job, making a salary that is many times what you're able to earn working part time as a student. How might you choose to use your good fortune?

   Would you rush right out and buy a case of toothpaste and shampoo to celebrate, buy some extra typing paper and pens? Or, would you perhaps celebrate with a meal in a fine restaurant, buy a car, a boat... start planning your first really great vacation?

   We're all unique individuals, so who knows what any one person will do. However, the number of people who celebrate economic good fortune with toothpaste is much smaller than those who celebrate with champagne and vacations. Which type of good will have the larger income elasticity?

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