Table 5-7 The Following Table Shows a Portion of the Demand Schedule

question 497

Multiple Choice

Table 5-7
The following table shows a portion of the demand schedule for a particular good at various levels of income.
-Refer to Table 5-7. Using the midpoint method, at a price of $12, what is the income elasticity of demand when income rises from $5,000 to $10,000?

• A)0.00
• B)0.41
• C)1.00
• D)2.45

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Definitions:

Trading Partner

A country or organization which engages in international trade with another entity, typically exchanging goods, services, or information.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, forming the basis of international trade.

Exporting Nation

A country that sells goods and services to other countries, resulting in a net inflow of funds from international trade.