Multiple Choice
According to a study of the Canadian demand for alcoholic beverages, the price elasticity of demand for beer is -0.17.Which of the following could explain why the price elasticity of demand for beer is low?
A) Beer is an inferior alcoholic beverage.
B) More and more people are switching to wine and cocktails rather than beer.
C) The price of beer is relatively low and for many people it is a habit forming product.
D) There are only a few major suppliers of beer.
Correct Answer:
Verified
Correct Answer:
Verified
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