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

question 594

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 $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:

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, controlling entry and exit of substances.

Cytoplasm

The jelly-like substance within a cell, excluding the nucleus, that contains organelles, cytosol, and is the site of numerous biochemical reactions.

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth, or in cells, a membrane-bound organelle that contains the cell's chromosomes.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out of the cell.