If an Engel curve has a negative slope, A) the good is ...

[vicotolentino]

If an Engel curve has a negative slope,
 
  A) the good is inferior.
  B) the good is normal.
  C) the good has no substitutes.
  D) the good has no complements.

Question 2

A bumper-to-bumper warranty on a used car is a signaling device that
 
  A) identifies a high-quality car as a high-quality car, because putting such a warranty on a low-quality car would be prohibitively costly.
  B) disguises a low-quality car as a high-quality car, and thus makes it easier to sell.
  C) is necessary in order to sell a low-quality car at all. Without it no one would risk buying the car.
  D) isn't necessary if there is a mix of high-quality and low-quality cars in the market.
  E) helps sellers determine whether the buyer is truly looking for a high-quality car.

[bassamabas]

Answer to Question 1

A

Answer to Question 2

A

[vicotolentino]

Gracias!

[amcvicar]

TYSM