The dropout rate for young people from families with incomes $100,000 and above is less than 3 percent; for those from families with incomes below $25,000, the dropout rate is about:

The dropout rate is about 12%

Explanation:

There is an inverse relationship between the drop out rate and income, this means the an increase in the income will cause a significant decrease in the dropout rate. This can be expressed as;

I=k/d

where;

I=income

k=constant of proportionality

d=dropout rate

In our case;

I=$100,000

k=unknown

d=3%=3/100=0.03

replacing;

100,000=k/0.03

k=100,000×0.03=3,000

Using different values of Income;

I=$25,000

k=3,000

d=unknown

replacing;

25,000=3,000/d

d=3,000/25,000=0.12

The dropout rate=0.12×100=12%

The dropout rate=12%

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)