Economists estimated that the cross-price elasticity of demand for beer and wine is -0.83 and the income elasticity of wine is 5.03. This means that
A) beer and wine are substitutes and wine is a luxury good.
B) beer and wine are substitutes and wine is an inferior good.
C) beer and wine are complements and wine is a luxury good.
D) beer and wine are complements and wine is an inferior good.
C
Economics
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A reverse repurchase agreement of government securities by the Fed
A) permanently increases bank reserves. B) temporarily increases bank reserves. C) permanently reduces bank reserves. D) temporarily reduces bank reserves.
Economics
The MPC on ________ income is less than the MPC on ________ income according to ________ theory
A) transitory; permanent; Friedman's B) transitory; permanent; Modigliani's C) permanent; transitory; Modigliani's D) permanent; transitory; Friedman's
Economics