Final answer:
The incorrect pronoun in the sentence is 'me'. It should be 'I' to correctly form the compound subject 'You and I' as part of the sentence's subject.
Step-by-step explanation:
The pronoun that is not used correctly in the sentence "You and me have a good chance with this shop." is 'me'. In English grammar, the subjective case pronouns function as subjects within a sentence. Therefore, when a pronoun is part of the subject, it must be in the subjective case. The sentence should use 'I' instead of 'me' to form a compound subject correctly, as in "You and I have a good chance with this shop." The pronoun 'I' is the subjective case, and hence it should be used as part of the subject of the sentence, not the objective case pronoun 'me'.