Economists Have Estimated That the Cross-Price Elasticity of Demand Between

question 280

Multiple Choice

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; luxuries
• B)normal goods; luxuries
• C)complements; substitutes
• D)substitutes; luxuries

---

Definitions:

Psychological Needs

Basic human motivations that include the need for love, esteem, belonging, autonomy, and competence, influencing behavior and well-being.

Terminated Employees

Employees who have been dismissed or laid off from their positions within an organization.

Vertical Integration

The merger or acquisition of two organizations that have a buyer-seller relationship.

Integration Difficulties

Challenges faced when combining different systems, processes, cultures, or organizations into a cohesive and functioning whole.