Is the answer to the question below correct? If so please explain. Also please explain what the answer would be if the price elasticity of beer is -0.23 and income elasticity of beer is 0.09.

Question :

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

means that

Selected Answer:

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

Choices:

• 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 a decrease in the quantity demanded of beer and beer is a necessity.
• 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 an increase in revenue for beer sellers and beer is an inferior good.