Determine Whether There Is Positive Correlation, Negative Correlation, or No

question 2

Multiple Choice

Determine whether there is positive correlation, negative correlation, or no discernible correlation between the variables shown in the scatter plot below.

• A) positive correlation
• B) negative correlation
• C) no discernable correlation

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a certain price point.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell, creating a balanced market situation.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price levels, at a given point in time.