Suppose Amy's income increased from $8,000 to $12,000. As a result, her consumption of apples decreased from 11 pounds to 9 pounds. Usingthe midpoint method, we can conclude that Amy's income elasticity of demand isO a. -1.O b. 1.C. -2.O d. -0.5.

uppose Amy's income increased from $8,000 to $12,000. As a result, her consumption of apples decreased from 11 pounds to 9 pounds. Using me midpoint method, we can conclude that Amy's income elasticity of demand is O a. -1. O b. 1. O c. -2. O d. -0.5.

uppose Amy's income increased from $8,000 to $12,000. As a result, her consumption of apples decreased from 11 pounds to 9 pounds. Using me midpoint method, we can conclude that Amy's income elasticity of demand is O a. -1. O b. 1. O c. -2. O d. -0.5.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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Question

Suppose Amy's income increased from $8,000 to $12,000. As a result, her consumption of apples decreased from 11 pounds to 9 pounds. Using
the midpoint method, we can conclude that Amy's income elasticity of demand is
O a. -1.
O b. 1.
C. -2.
O d. -0.5.

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