SCENARIO 1: Consider the market for generic light beer, a product that only has "Light Beer" on its label. We know that demand for generic light beer falls when income increases, demand rises when the price of other beer increases, and that demand rises when the price of potato chips falls.
-Refer to Scenario 1. Graph and explain the effect on equilibrium price and quantity of an increase in income. What type of good is "Light Beer"?

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The Answer of SCENARIO 1: Consider the market for generic light beer, a product that only has "Light Beer" on its label. We know that demand for generic light beer falls when income increases, demand rises when the price of other beer increases, and that demand rises when the price of potato chips falls.
-Refer to Scenario 1. Graph and explain the effect on equilibrium price and quantity of an increase in income. What type of good is "Light Beer"?

SCENARIO 1: Consider the Market for Generic Light Beer, a Product