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 beer due to an increase in the price of potato chips. How are the goods related?

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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 beer due to an increase in the price of potato chips. How are the goods related?

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