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Which statement is definitely true about shelter in the graph below? Which statement is definitely true about shelter in the graph below?   A) The demand curve is negatively sloped over the price range shown. B) It is clearly a normal good throughout the range shown. C) It is an inferior good throughout the range shown. D) The income and substitution effects must be shown before any of these statements can be definitely true.


A) The demand curve is negatively sloped over the price range shown.
B) It is clearly a normal good throughout the range shown.
C) It is an inferior good throughout the range shown.
D) The income and substitution effects must be shown before any of these statements can be definitely true.

E) B) and C)
F) C) and D)

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Other things equal, which of the following goods would have the most inelastic price elasticity of demand?


A) A t-shirt from The Gap (a famous American retail store) .
B) All red t-shirt sold in the U.S.
C) All shirts, of any color, sold in the U.S.
D) A red t-shirt from Macy's (a large department store) .

E) A) and B)
F) B) and D)

Correct Answer

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