Empirical estimates of the price elasticity of demand in Table ...

[tsand2]

Empirical estimates of the price elasticity of demand in Table 3.4 suggest that the demand for household consumption of alcoholic beverages is:
 a. highly price elastic
  b. price inelastic
  c. unitarily elastic
  d. an inferior good
  e. none of the above

Question 2

The parent company would want to reward managers based on division revenues because
 a. It decreases the incentives for the managers to make good decisions for their division
  b. It increases the incentives for the managers to make good decisions for their divisions
  c. It does not change the motivations for the managers
 d. None of the above

[bblaney]

Answer to Question 1

b

Answer to Question 2

b