Economics - Old Questions

6. Consider the following demand schedule:

Combination	A	B	C	D	E
Income (Rs)	0	2	4	6	8
Demand (Units)	200	160	120	80	40

i) Compute the income elasticity of demand at movement from B to C and C to B by the proportional method.
ii) Compute the income elasticity of demand midway between B and C and C and B. [5]