Use the Figure to Calculate the Income Elasticity of Demand

question 62

Multiple Choice

Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:

• A)-1.0
• B)-0.1818
• C)0.1818
• D)-1.5
• E)1.2

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Definitions:

Effector

A part of the body, such as a muscle or organ, that produces a response when stimulated by a nerve impulse.

Interneuron

Neuron located within the central nervous system that conveys messages between parts of the central nervous system.

Stroke

Condition resulting when an arteriole in the brain bursts or becomes blocked by an embolism; cerebrovascular accident.