When Her Income Increases from $10,000 to $20,000,as Shown in the Accompanying

question 12

Multiple Choice

When her income increases from $10,000 to $20,000,as shown in the accompanying table,Juanita increases the quantity demanded from 3 to 7 rolls at a price of $3.From the midpoint method,income elasticity of demand for sushi is

• A) 0.67.
• B) 1.20.
• C) 1.33.
• D) 0.83.
• E) 0.50.

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Definitions:

Investment Freedom

The ease with which individuals and corporations can allocate their resources without facing excessive regulatory hurdles.

Trade Freedom

A measure of the absence of trade barriers that affect imports and exports, such as tariffs and quotas.

Fiscal Freedom

The degree to which individuals and businesses control their own economic resources, including the policies and laws that influence taxation and government spending.

Tariff

A tax imposed by a government on imported or, less commonly, exported goods to control trade volumes, protect domestic industries, or generate revenue.