Question

The graph shows a demand curve. A graph titled Demand Curve has Quantity Demanded on the x-axis, from 0 to 60 in increments of 10, and Price on the y-axis, from 0 to 20 dollars in increments of 2 dollars and 50 cents. A line with negative slope is on the graph. What does the data shown in this graph represent? a decrease in quantity demanded as prices decrease an increase in price as quantity demanded decreases a decrease in income as quantity demanded increases an increase in quantity demanded as prices decrease

Answer 1

Answer:

Two statements are correct:

• An increase in price as quantity demanded decreases

• An increase in quantity demanded as prices decrease

Step explanation:

The quantity represented on the x-axis, the demanded quantity in tis case, is the independent variable.

The quantity represented on the y-axis, the price in this case, is the dependent variable.

A negative slope means an inverse relation, meaning that as one quantity increases the other decreases; thus both the first and the last statements are correct: as the quantiy demanded decreases the price increases (first option) and as prices decrease the quantity demanded increase.

Remember that the slope is the ratio of the change on the y-axis (the rise) to the change on the x-axis (the run):

• slope = rise/run = change in y / change in x

Hence, if  the slope is negative, an increase on one variable will mean that the other variable decreases.

Answer 2

Answer:

quantity demanded increases as prices decrease

Step-by-step explanation: