Homework answers / question archive / Albert's demand function for beer is [{MathJax fullWidth='false' Q_d(P) = 5,000 - 10P - Y }], where [{MathJax fullWidth='false' P }] is the price of beer and [{MathJax fullWidth='false' Y }] is income

Albert's demand function for beer is [{MathJax fullWidth='false' Q_d(P) = 5,000 - 10P - Y }], where [{MathJax fullWidth='false' P }] is the price of beer and [{MathJax fullWidth='false' Y }] is income

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Albert's demand function for beer is [{MathJax fullWidth='false' Q_d(P) = 5,000 - 10P - Y }], where [{MathJax fullWidth='false' P }] is the price of beer and [{MathJax fullWidth='false' Y }] is income. Suppose [{MathJax fullWidth='false' Y }] = $1,000 and [{MathJax fullWidth='false' P }] = $200 per gallon. Which of the following statements is incorrect? a. Price elasticity of demand is -1. b. Income elasticity of demand is -0.5. c. Beer is a normal good to Albert. d. Beer is an inferior good to Albert.