Question
answer each in detail a) What would happen to the market demand for beer if the price of all types of wine increased by 30%?
answer each in detail
a) What would happen to the market demand for beer if the price of all types of wine increased by 30%? You might want to distinguish between different types of beer. (Your answer should show you understand the concept of cross elasticity of demand.)
b) What would happen to the market demand for fur coats if income went up by 25% What would happen to the demand for underwear if income went up by the same 25%. Again, you should distinguish different types of product within each catagory. (Your answers should reflect your knowledge of income elasticity of demand)
c) What would happen to the demand for fur coats if advertising for the product went up by 30% What would happen to the demand for underwear if advertising for the product went up by 30%. Again, you might want to distinguish different types of product within each catagory.
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