Question

a) CROSS ELASTICITY OF DEMAND: What would happen to the market demand for beer if the price of wine increased by 20%? You might want to distinguish between different types of beer. (Your answer should show you understand the concept of cross elasticity of demand.)

b) INCOME ELASTICITY OF DEMAND: What would happen to the demand for fur coats if income went up by 20% What would happen to the demand for underwear if income went up by 20%. Again, you might want to distinguish different types of product within each category. (Your answers should reflect your knowledge of income elasticity of demand)

c) ADVERTISING ELASTICITY OF DEMAND: What would happen to the demand for fur coats if advertising for the product went up by 20% What would happen to the demand for underwear if advertising for the product went up by 20%. Again, you might want to distinguish different types of product within each category.

Answer 1

1.
a) oss puce elau Rel atud can be substitut duiet oto eross elaiue for cony'l, went demand dewand nonu elatli er Muau lh tonu
2.
uith rome alAu clay し ewnn Meceriti adv er huore uith 千nnel mew awIn ек outoa dumau