Use the following to answer questions :
Figure 3-5
-Which of the following could represent the demand schedule in Figure 3-5?
A)P = 1000 + 2Q
B)P = 3Q - 500
C)P = 200 - 5Q
D)P = Q
E)None of the above.

Question

Use the following to answer questions :
Figure 3-5 
-Which of the following could represent the demand schedule in Figure 3-5?
A)P = 1000 + 2Q 
B)P = 3Q - 500 
C)P = 200 - 5Q 
D)P = Q 
E)None of the above.

Quizplus · Accepted Answer

In Figure 3-5, the demand curve is downward sloping, which indicates an inverse relationship between price and quantity demanded. Option C is the only equation that represents an inverse relationship between price and quantity demanded. The other options either have a positive relationship between price and quantity demanded (option A) or do not have a linear relationship (options B and D). Therefore, option C is the best choice for the demand schedule in Figure 3-5.

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