Wayne likes to buy cheese and wine. When Wayne's income increases by 10% his demand for wine increases by 25% and his demand for cheese increases by 8%. Calculate the income elasticities of demand for these goods. Using this information what can we say about the category of good? Can we infer from this data that wine and cheese are complements?

Wayne likes to buy cheese and wine. When Wayne's income increases by 10% his demand for wine increases by 25% and his demand for cheese increases by 8%. Calculate the income elasticities of demand for these goods. Using this information what can we say about the category of good? Can we infer from this data that wine and cheese are complements?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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