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Question #6: Data in 1970-1999 suggest that wine consumption per capita in the State of New York is: %Wine = - 0.7*(%Price of Wine) +
Question #6: Data in 1970-1999 suggest that wine consumption per capita in the State of New York is: %Wine = - 0.7*(%Price of Wine) + 3.8*(%AIncome) + 1.0*(%APrice of Beer) where Wine is gallon of wine per capita, Price of Wine and Price of Beer are prices of wine and beer, respectively, and Income is nominal income per capita. All variables are expressed as percentage changes year-over-year, which are denoted as %A in the above equation. a. Explain the demand behavior of wine drinkers in New York. b. Does the behavior of New York consumers follow the law of demand? Why or why not
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