Studies Show That the Income Elasticity of Demand for Wine

question 99

Multiple Choice

Studies show that the income elasticity of demand for wine is approximately five.What does this mean?

• A) A one percent decrease in the price of wine leads to a five percent increase in wine consumption.
• B) A one percent increase in income leads to a five percent increase in wine consumption.
• C) A five percent increase in income leads to a one percent increase in wine consumption.
• D) Wine is a relatively elastic good.

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Definitions:

Ethnography

A qualitative research method focused on the systematic study of people and cultures from the insider’s perspective, through observation and interviews.

Manufacturing Company

A business specialized in the production of goods using labor, machines, tools, and chemical or biological processing.

Geertz's

Referring to the work or theoretical contributions of Clifford Geertz, an American anthropologist known for his interpretative approach to culture.

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A concept in cultural anthropology that signifies the intricate and interconnected symbols and meanings in a society.