Economists Estimated That the Price Elasticity of Beer Is -0

question 198

Multiple Choice

Economists estimated that the price elasticity of beer is -0.30 and the income elasticity of beer is 0.09. This means that

• A) an increase in the price of beer will increase the quantity demanded of beer and beer is a normal good.
• B) an increase in the price of beer will lead to an increase in revenue for beer sellers and beer is a normal good.
• C) a decrease in the price of beer will lead to an increase in revenue for beer sellers and beer is an inferior good.
• D) an increase in the price of beer will lead to a decrease in the quantity demanded of beer and beer is a necessity.

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Definitions:

Goal Shielding

The process of protecting one's focus on achieving a particular goal by resisting distractions and unrelated objectives.

Strict Diet

A rigorous and specific plan for eating, often for health or weight management purposes, that limits certain foods or nutrients.

High-stress

A condition or environment characterized by significant psychological pressure or strain, often resulting in physical or emotional health challenges.

Reactance

A provoked emotional response to offers, entities, principles, or regulations that compromise or revoke certain freedoms of conduct.