Hello! Can you help me with the question below? An econometric study found that the income elasticity of beer was 1.3 and the cross price elasticity between beer and wine was .08. This evidence is consistent with: A) Beer and wine being complements and beer being a normal good B) The consumption of beer and wine being non-rivalrous C) Beer and wine being substitutes and beer being inferior good D) Beer and wine being substitutes and beer being a normal good
Hello! Can you help me with the question below? An econometric study found that the income elasticity of beer was 1.3 and the cross price elasticity between beer and wine was .08. This evidence is consistent with: A) Beer and wine being complements and beer being a normal good B) The consumption of beer and wine being non-rivalrous C) Beer and wine being substitutes and beer being inferior good D) Beer and wine being substitutes and beer being a normal good
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter6: Simple Pricing
Section: Chapter Questions
Problem 5MC
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Hello! Can you help me with the question below?
An econometric study found that the income elasticity of beer was 1.3 and the cross price elasticity between beer and wine was .08. This evidence is consistent with:
-
A) Beer and wine being complements and beer being a normal good
-
B) The consumption of beer and wine being non-rivalrous
-
C) Beer and wine being substitutes and beer being inferior good
-
D) Beer and wine being substitutes and beer being a normal good
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