Economists Have Estimated That the Cross-Price Elasticity of Demand Between

Multiple Choice

Economists have estimated that the cross-price elasticity of demand between beer and spirits is -0.50, the income elasticity for spirits is 1.21 and the income elasticity for wine is 5.03.These elasticities mean that beer and spirits are ________, and spirits and wine are ________.

A) complements; luxuries
B) normal goods; luxuries
C) complements; substitutes
D) substitutes; luxuries