Question

This Is Econ

Answer 1

Answer:

Given an understanding of the Law of Demand in economics, and looking at the data provided by the graph, there are two possible answers here, both equally supported by the theory itself: An increase in price as quantity demand decreases, and an increase in quantity demanded as prices decrease. However, given that there is only one option, I would have to go with the last option as the best answer.

Both outcomes are equally supported by the graph shown here. The highest price for a product appears at the lowest possible quantity demand ($15.00 for a given product at the lowest quantity demand point, which would be near 0), and not just demand in general, but quantity of a product demanded, and the price starts to go down as the quantity demands goes higher. However, given that there is only one possible answer, I would go for the last one as the most accurate way to interpret the graph. What can definitely be concluded is that price level is inversely tied to quantity demanded of any given product.

Answer 2

An increase in price makes the demand higher.

As you can see by the graph, as the prices is lowered, the demand increases.

Hope this helped!