The market demand curve for denim jeans is Q = 231 – 45 P + 23 I where
The market demand curve for denim jeans is Q = 231 – 45 P + 23 I where P is the product price and I is per-capita consumer income. Which of the following statements about this demand function is NOT true?
A) Denim jeans are normal goods.
B) The price elasticity of demand is -45.
C) The demand curve is downward sloping.
D) The Engel curve for this denim jeans is upward sloping.
ANSWER
B
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