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The demand for beer is elastic.

Beer is not a necessity good and therefore demand is highly affected by price. A good demonstration of this is the heavy summer price competition between manufacturers and the popularity of discount brands.

It's regulated by state taxes.
Beer is elastic because it is not a necessity for survival and because there are many substitutes for beer (ie red wine, champagne), demand is highly affected by price changes.

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12y ago
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14y ago

Yes, - 1.13

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Q: Is the demand for Budweiser price elastic?
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When the price of a good will cause total revenue to fall if price elasticity of demand is elastic or inelastic?

when price changes it is called inelastic demand and when quantity of demand change that is called elastic of demand.


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