Demand: true or false?

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   All Giffen goods are inferior goods

2. Statement is true

   No

   Statement

   All inferior goods are Giffen goods

3. Statement is true

   No

   Statement

   The law of demand is a direct relation

4. Statement is true

   Yes

   Statement

   The Veblen effect concerns conspicuous consumption

5. Statement is true

   Yes

   Statement

   Price elasticity of demand is generally negative

Instructions

Tap True or False for each statement.

Explanation