Table 5-5 -Refer to Table 5-5.Using the Midpoint Method,the Income Elasticity of Method,the

question 376

Multiple Choice

Table 5-5

-Refer to Table 5-5.Using the midpoint method,the income elasticity of demand for good Y is

• A) 2.33,and good Y is a normal good.
• B) -2.33,and good Y is an inferior good.
• C) -0.43,and good Y is a normal good.
• D) -0.43,and good Y is an inferior good.

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Definitions:

Breakeven Analysis

Breakeven analysis is a financial evaluation to determine the point at which a business, product, or service becomes profitable, balancing costs with revenue.

NPV

Net Present Value, a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

ROI

Short for Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several investments.

Shadow IT

Shadow IT refers to IT systems and solutions built and used inside organizations without explicit organizational approval.