Question

In: Economics

The following graph contains four lines (A, B, C and D), each of which has a...


The following graph contains four lines (A, B, C and D), each of which has a slope that is either positive, negative, zero, or infinite.

image.png

For each of the following scenarios, indicate whether the relationship between the two variables is positive or negative, as well as which line on the previous graph has a slope that reflects this type of relationship.

 Hint: The X-axis and Y-axis on the graph are not labeled intentionally. You need to substitute the variables from each scenario for the horizontal and vertical axis. For example, in the first scenario, X-axis should be labeled ice-cream" and Y-axis should be labeled "The temperature". 


As the temperature rises, the demand for ice-cream rises 

As the temperature rises, the demand for hot cocoa falls. 

As the temperature falls, the demand for popsicles falls. 


True or False: Line A has a slope of zero. 


Solutions

Expert Solution

Ans) Positive relationship is when as one rises, other also rises and when one falls, other also falls. It is shown by upward sloping line. Line C.

Negative relationship is when as one rises, other drops and vice versa. It is shown by downward sloping line. Line D.

A line with zero slope is straight horizontal line(A) and a line with infinite slope is straight vertical line (B).


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