Economists have estimated that the cross-price elasticity of demand between beer and spirits is -0.50, the income elasticity for spirits is 1.21 and the income elasticity for wine is 5.03
These elasticities mean that beer and spirits are ________, and spirits and wine are ________.
A) complements; substitutes B) substitutes; luxuries
C) complements; luxuries D) normal goods; luxuries
C
Economics
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According to Piketty, economic history is the story of a race between:
a. capital accumulation b. population growth c. technological progress d. all of the above e. a and c only
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When the absence of property rights causes a market failure, the government can potentially solve the problem
a. by clearly defining property rights. b. through regulation. c. by supplying the good itself. d. All of the above are correct.
Economics