Multiple Choice
(Table: Market for Mexican Take-Out) Use Figure: Market for Mexican Take-Out. If income changes from $1,000 to $1,400 per month, the income elasticity of demand, computed using the midpoint method at a price of $10 per Mexican take-out meal, is:
A) 1.2.
B) -1.2.
C) 0.825.
D) 0.40.
Correct Answer:

Verified
Correct Answer:
Verified
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