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

question 224

Multiple Choice

Table 5-5
The following table shows a portion of the demand schedule for a particular good at various levels of income.

-Refer to Table 5-5.Using the midpoint method,when income equals $7,500,what is the price elasticity of demand between $16 and $20?

• A) 0.56
• B) 0.75
• C) 1.33
• D) 1.80

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Definitions:

Trade Promotion

Sales promotion geared to marketing intermediaries rather than to final consumers.

Marketing Intermediaries

Organizations or individuals that act as a middleman in the distribution process, moving products from the manufacturer to the consumer.

Investments

Items or resources purchased with the intention of earning revenue or increasing in worth as time progresses.

Product Life Cycle

Four basic stages—introduction, growth, maturity, and decline—through which a product progresses.