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

question 325

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 $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:

Observations

Data points collected during a study or experiment, representing individual instances or occurrences of the variables being studied.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies how much the data points differ from the mean.

Standard Deviation

An indicator of the range or spread of a collection of numbers, showing how far the values diverge from the average.

Observations

The collected data or individual points that have been observed or recorded for a particular study or analysis.