Refer to the Accompanying Table A) 071
B) 0

question 117

Multiple Choice

Refer to the accompanying table. When the price drops from $5 to $3, price elasticity of demand for sushi (using the midpoint method) at an income of $30,000 is: $$\begin{array} { | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { (per roll) }\end{array} & \begin{array} { l } \text { Quantity Demanded } \\\text { (income } \\\$ 10,000 / \text { year) }\end{array} & \begin{array} { l } \text { Quantity Demanded } \\\text { (income = } \\\$ 30,000 / \text { year) }\end{array} \\\hline \$ 1 & 5 & 9 \\\hline \$ 2 & 4 & 8 \\\hline \$ 3 & 3 & 7 \\\hline \$ 4 & 2 & 6 \\\hline \$ 5 & 1 & 5 \\\hline\end{array}$$

• A) 0.71.
• B) 0.67.
• C) 0.10.
• D) 0.33.
• E) -0.67.

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Definitions:

Simple Interest

Interest computed exclusively on the original amount of a loan or deposit, without adding interest to the principal for future calculations.

Annual Rate

The interest rate for a period of one year, often used to compare the yields of investments or loans.

Simple Interest Rates

The rates at which simple interest is calculated, typically expressed as a percentage of the principal amount annually.

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Loans offered to students to finance their education, which are typically repaid after the completion of the degree or program.