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:

Segregated Neighborhood

A community where housing and living conditions are largely divided based on racial, ethnic, or sometimes economic lines.

Whites

A racial classification often used to refer to individuals of European descent or those identified with light skin tones.

Asians

Refers to individuals from the Asian continent, encompassing a variety of cultures, languages, and ethnicities.

Levittown

One of the first majorly successful mass-produced suburban housing developments in the U.S., known for its affordable houses that facilitated the growth of the American middle class.