In the Diagram Above, Which Figure(s)show(s)an Inverse Relationship Between the Variables

question 188

Multiple Choice

In the diagram above, which figure(s) show(s) an inverse relationship between the variables?

• A)only D
• B)only C
• C)both B and C
• D)both A and C
• E)only B

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Definitions:

Determinants of Market Supply

Factors that influence the quantity of a good or service that producers are willing and able to sell at a given price, such as production costs, technology, and number of sellers.

Law of Demand

The economic principle that, all else being equal, there is an inverse relationship between the price of a good and the quantity demanded.

Other-Things-Equal Assumption

The assumption that factors other than those being considered are held constant. Also known as the ceteris paribus assumption.

Supply

The total amount of a specific good or service that is available to consumers at current prices.