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

question 492

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,at a price of $8,what is the income elasticity of demand when income rises from $7,500 to $10,000?

• A) 0.00
• B) 0.41
• C) 1.00
• D) 2.45

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Definitions:

Environmental Sustainability

The ability to meet humanity’s current needs without compromising the ability of future generations to meet their needs.

Endangered Species

A species whose numbers are so severely reduced that it is in imminent danger of extinction throughout all or part of its range. Compare with threatened species.

Trematodes

A class of flatworms, commonly known as flukes, which are parasitic at some stage of their life cycle.

Habitat Destruction

The process by which natural habitat is rendered unable to support the species present, usually due to human activities such as agriculture or urban development.