The average monthly rent for one-bedroom apartments in chattanooga has been $700. because of the downturn in the real estate market, it is believed that there has been a decrease in the average rental. the correct hypotheses to be tested are:

y>700 and 700>y>0

Explanation:

Though there is not so much information, but the fact that $700 is an average. We can work with two hypothesis at first, he first Hypothesis before the downturn the rent are over $700. And the second one, the bedroom rent are under $700.

1) Graphically, the shaded area before the downturn, represents the set of values for Rents greater than $700. So, rent (y) > 700

2) Graphically, the shaded area after the downturn, represents the set of values for Rents lesser than $700. So, rent 700 <y<0

d. the economy will face inflation.