Solved

Table 5-3

​ -Refer to Table 5-3

Question 186

Multiple Choice

Table 5-3


 Income  (Dollars)   Quantity of Good X  Purchased  Quantity of Good Y  Purchased 30,00022040,000610\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Income } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Quantity of Good X } \\\text { Purchased }\end{array} & \begin{array} { c } \text { Quantity of Good Y } \\\text { Purchased }\end{array} \\\hline 30,000 & 2 & 20 \\\hline 40,000 & 6 & 10 \\\hline\end{array}
-Refer to Table 5-3. 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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents