Math Problem Statement
Becky only eats out at Macaroni Grill and eats out 3 times per month. She receives a raise from $31,900 to $33,500 and decides to eat out 5 times per month. Use the midpoint method to calculate the monthly income elasticity of demand for eating out.
Round your answer to two decimal places.
Solution
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Math Problem Analysis
Mathematical Concepts
Elasticity of Demand
Midpoint Method
Percentage Change
Formulas
Income Elasticity of Demand = (% change in quantity demanded) / (% change in income)
% change in quantity demanded = (Q2  Q1) / ((Q2 + Q1) / 2)
% change in income = (I2  I1) / ((I2 + I1) / 2)
Theorems

Suitable Grade Level
Grades 1012
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