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

question 475

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 $16, what is the income elasticity of demand when income rises from $5,000 to $10,000?

• A)0.00
• B)0.50
• C)1.00
• D)1.50