During the mid-2000s, the average price of a used car fell by ...

[luminitza]

During the mid-2000s, the average price of a used car fell by nearly 500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand.
 
  Indicate whether the statement is true or false

Question 2

If the quantity demanded of a good decreases by 10 percent when the price of the good increases by 5 percent, the elasticity of demand is -2.00.
 
  Indicate whether the statement is true or false

[Christopher]

Answer to Question 1

FALSE

Answer to Question 2

FALSE