§ Mr. MacGregorasked the Chancellor of the Exchequer what figures he uses for price elasticity and income elasticity of demand in calculating his sales forecasts on varying gross national product and excise duty assumptions for tobacco and drink, and within the drink classification for table wines, heavy wine, beer and spirits.
§ Mr. Robert SheldonThe elasticities used in making Government economic forecasts are:
Own Price Elasticity Income Elasticity Tobacco … … -0.5 +0.6 Beer … … -0.2 +0.7 All Wine … … -0.1 +2.5 Spirits … … -1.5 +2.2 Separate estimates of the elasticities for table wine and heavy wine are not available.