Question

In: Economics

If a relation between X and Y is provided by the equation y = 12 +...

If a relation between X and Y is provided by the equation y = 12 + –2.6 x, then we know that there is a _____ relationship between the variables X and Y.

A.

non-linear

B.

linear

C.

constant

D.

negative

E.

Only A and C

F.

Only B and D

G.

Only B, C, and D

Solutions

Expert Solution

y = 12 + –2.6 x

y = 12–2.6 x

An equation is constant and linear when slope remain same. Here:

Slope of equation= dy/dx= -2.6

Also as the value of slope is negative which means there is negative relationship between y and x that is as x increases, it will cause y to decrease. Also the slope is constant which implies linear and constant relationship between the variables x and y.

The correct option is:

G. Only B, C, and D


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