Economists Estimated That the Cross-Price Elasticity of Demand for Beer

question 66

Multiple Choice

Economists estimated that the cross-price elasticity of demand for beer and wine is 0.31 and the income elasticity of wine is 5.03.This means that

• A)beer and wine are substitutes and wine is an inferior good.
• B)beer and wine are complements and wine is a luxury good.
• C)beer and wine are substitutes and wine is a luxury good.
• D)beer and wine are complements and wine is an inferior good.

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Definitions:

Laryngitis

Inflammation of the larynx or voice box, resulting in hoarseness or loss of voice, often caused by infection or overuse.

Tonsillitis

Inflammation of the tonsils—lymphoid tissue located in the pharynx.

Pharyngitis

Inflammation of the pharynx, commonly known as throat inflammation, which can cause sore throat and difficulty swallowing.

Pleura

A double-layered membrane surrounding each lung, providing lubrication and facilitating breathing movement.