If a Graph Shows a Negative Relationship Between Two Variables

question 34

Multiple Choice

If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would

• A) have a minimum point.
• B) always be a downward-sloping line.
• C) have a maximum point.
• D) always be an upward-sloping line.

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Definitions:

Reduced Prices

The offering of goods and services at lower rates than originally marked, often to clear inventory or boost sales.

Competition

The economic rivalry among businesses to attract customers, increase sales, and achieve a higher market share.

Natural Monopoly

A type of monopoly that occurs when a single firm can supply the entire market at a lower cost than any potential competitors, often due to high fixed costs.

Fair Return

A reasonable profit that companies aim for, which covers costs and provides a sustainable margin without being excessive.