Answer the next two questions using this quotation:

"The increases in income don't have much impact on eating habits. According to an Agricultural Department study, a 10% gain in income produces only a 3.6% rise in food spending.

One consumption item that does appear quite responsive to income changes is liquor. Americans, the study suggests, don't run off to the supermarket after a pay raise, but they do spend more money at the corner bar or liquor store."

-from Wall Street Journal August 16, 1979

According to this excerpt, food:

is an inferior good.
is a substitute good for liquor.
is a normal good.
has a price elasticity of .36.


According to this excerpt, liquor:

has a higher income elasticity than food.
is a complementary good to food.
is a substitute good for food.
is an inferior good.
has an income elasticity of .36.


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