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Question
When her income falls from $50,000 to $20,000, Arianna increases her monthly purchase of hamburger from 20 pounds to 35 pounds. From the midpoint method, Ariannas income elasticity of demand for hamburgers is
a. -1.57.
b. - 0.63.
c. 0.54.
d. - 0.85.
e. 1.57.
Answer
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