Use the following graph to answer the next question.If this economy was an open economy without a government sector, the level of real GDP would be

What is the typical shape of a total product curve?

a. An S-shape b. A U-shape c. An inverted U-shape d. A constantly increasing line e. A constantly decreasing line

If a 5 percent decrease in income leads to a 15 percent decrease in the demand for a good, the income elasticity of demand equals

A) -1/3 and the good is an inferior good. B) 1/3 and demand for the good is income elastic. C) 3 and the good is a normal good. D) -3 and the demand for the good is income inelastic. E) 3 and the good is an inferior good.