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

question 91

Multiple Choice

Economists have estimated that the cross-price elasticity of demand between beer and spirits is 0.15,the income elasticity for spirits is 1.21 and the income elasticity for wine is 5.03.These elasticities mean that

• A)beer and spirits are complements,spirits and wine are luxuries.
• B)beer and spirits are normal goods,spirits and wine are luxuries.
• C)beer and spirits are complements,spirits are substitutes.
• D)beer and spirits are substitutes,spirits and wine are luxuries.

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Definitions:

Table

A method of organizing data in rows and columns, making it easier to read and interpret the information.

Class Intervals

The range of values divided into different segments or classes used in the distribution of data for histogram representation.

Observations

Data points or recorded measures of certain variables taken from samples or experimental studies.

Spread

The statistical range, measuring the variability or difference between the upper and lower bounds in a data set.