Joe received a promotion this year at work and now has an income which has increased by 21%
since last year. Joe has now increased his quantity demanded of red wine by 7%. In this example,
Joe's

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29-05-2021
Business

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Joe received a promotion this year at work and now has an income which has increased by 21%
since last year. Joe has now increased his quantity demanded of red wine by 7%. In this example,
Joe's

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vgut527 vgut527 · Answer 1 · 2021-05-29T06:55:37+02:00

Joe received a promotion this year at work and now has an income which has increased by 21% since last year. Joe has now increased his quantity demanded of red wine by 7%. In this example, Joe's

cross-price elasticity is 3 and the good is an inferior good.

income elasticity is .33 and the good is an inferior good.

income elasticity is .33 and the good is a normal good.

Answer- income elasticity is .33 and the good is a normal good.