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Between 2008 and 2010, despite significant recent reductions in prices, the sales of automobiles declined world-wide, but especially in the United States.
Now, with this knowledge, critique the following two statements:
a) Apparently the demand curve for automobiles is positively sloped. How else could a reduction in price lead to a reduction in sales?
b) This means that the price elasticity of demand for automobiles is highly inelastic, that is, unresponsive to price changes.
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