Price Elasticity Assignment | Homework For You

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December 9th, 2019

Economists estimated that the price elasticity of beer is -0.23 and the income elasticity of beer is- 0.09. This means that?

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an increase in the price of beer will increase the quantity demanded of beer and beer is a normal good.

an increase in the price of beer will lead to a decrease in the quantity demanded of beer and beer is a necessity.

a decrease in the price of beer will lead to an increase in revenue for beer sellers and beer is an inferior good.

an increase in the price of beer will lead to an increase in revenue for beer sellers and beer is an inferior good. Get Economics homework help today

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