According to a study of the U.S. demand for alcoholic beverages, the price elasticity of demand for beer is -0.30. Which of the following could explain why the price elasticity of demand for beer is low?
A) More and more people are switching to wine and cocktails rather than beer.
B) Beer is an inferior alcoholic beverage.
C) There are only a few major suppliers of beer.
D) The price of beer is relatively low and for many people it is a habit forming product.
D
Economics
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An increase in taxes shifts the
a. aggregate supply curve outward. b. aggregate demand curve outward. c. consumption schedule upward. d. consumption schedule downward.
Economics
If real salaries decrease but nominal salaries do not, this means that:
A. the purchasing power of money has increased. B. prices have not changed. C. prices have risen. D. prices have fallen.
Economics