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The following table illustrates your demand schedule for apples at given prices and incomes. Price per apple ($) Quantity demanded (Income = $10,000) Quantity demanded

The following table illustrates your demand schedule for apples at given prices and incomes.

Price per apple ($)

Quantity demanded

(Income = $10,000)

Quantity demanded

(Income = $12,000)

1 10 14
2 8 12
3 6 10
4 4 8
5 2 6
6 1 4
  1. Calculate your income demand elasticity of demand as your income increases from $10,000 to $12,000 at the price of an apple of $4. Explain the result. (10 marks)

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