As the Values for One Variable Increase from One Person

question 16

Multiple Choice

As the values for one variable increase from one person to another,the values for a second variable tend to decrease.This is an example of a __________ relationship.

• A)positive
• B)negative
• C)curvilinear
• D)These data show no consistent relationship.

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Definitions:

Reservation Price Model

A model that defines the maximum price a consumer is willing to pay for a good or service.

Aggregate Demand

The aggregate need for all products and services in an economy, measured at a specific price level and during a particular time frame.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.