In: Economics
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.
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 The average grade received" and Y-axis should be labeled "The number of hours spent studying".
As the number of hours spent watching TV rises, the average grade received falls.
As the number of hours spent studying falls, the likelihood of getting an A falls.
As the number of hours spent studying rises, the average grade received rises.
True or False: Line A has a slope of infinity.
True
False
The following graphs show the relationship between the price of apples and the quantity of apples supplied in two different regions, the North and the and South. Assume that the two lines are parallel.
In the North, if the price goes up by $0.20 per pound, then the quantity supplied in the North goes up by 100 pounds per year. If the price of apples goes up by $0.20 in the South, what will happen to the quantity supplied?
The quantity will increase by 50 pounds per year.
There is not enough information given to determine the supply change in the South.
The quantity will decrease by 100 pounds per year.
The quantity will increase by 100 pounds per year.