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Question
When her income increases from $10,000 to $20,000, as shown in the accompanying table, Juanita increases the quantity demanded from 3 to 7 rolls at a price of $3. From the midpoint method, income elasticity of demand for sushi is
Price (per roll) | Quantity Demanded (income = $10,000/year) | Quantity Demanded (income = $20,000/year) |
| $1 | 5 | 9 |
| $2 | 4 | 8 |
| $3 | 3 | 7 |
| $4 | 2 | 6 |
| $5 | 1 | 5 |
a. 0.67.
b. 1.20.
c. 1.33.
d. 0.83.
e. 0.50.
Answer
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