When Two Variables Have a Negative Correlation

question 1

Multiple Choice

When two variables have a negative correlation,

• A)they tend to move in opposite directions.
• B)they tend to move in the same direction.
• C)one variable will move while the other remains constant.
• D)the variables' values are never positive.

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Definitions:

Advertisers

Entities that promote goods, services, or ideas through various media to persuade potential customers to respond or buy.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another, reflecting a preference based on perception of the brand's value.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected when the price changes.