Solved

(Table: Market for Mexican Take-Out) Use Figure: Market for Mexican  Table: Market for Mexican Take-Out \text { Table: Market for Mexican Take-Out }

Question 130

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 $18 per Mexican take-out meal, is:  Table: Market for Mexican Take-Out \text { Table: Market for Mexican Take-Out }
 Price (per meal)   Quantity of Meals Demanded  (income =$1,000 per month)   Quantity of Meals Demanded  (income $1,400 per month)  203718481659146101271110812891361014\begin{array} { | l | l | l | } \hline \text { Price (per meal) } & \begin{array} { l } \text { Quantity of Meals Demanded } \\\text { (income } = \$ 1,000 \text { per month) }\end{array} & \begin{array} { l } \text { Quantity of Meals Demanded } \\\text { (income } \$ 1,400 \text { per month) }\end{array} \\\hline 20 & 3 & 7 \\\hline 18 & 4 & 8 \\\hline 16 & 5 & 9 \\\hline 14 & 6 & 10 \\\hline 12 & 7 & 11 \\\hline 10 & 8 & 12 \\\hline 8 & 9 & 13 \\\hline 6 & 10 & 14 \\\hline\end{array}


A) 0.33.
B) 0.50.
C) 0.95.
D) 2.

Correct Answer:

verifed

Verified

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

Related Questions