In recently published economics studies, researchers reported that the poor do not differ from the rest of the population in terms of basic consumption patterns. The poor can spent as much proportionally for housing, food, and will even purchase a luxury item (television) or high calorie-items (food rich in fat and calories), even when more rational considerations dictate the consumption of non-luxuries and basic food. Based on your understanding of the course-materials thus far, please explain why this is so (do not refute the findings; they are made by well-established economists) (20 points).
Sample Solution
