Refer to the above graph.Which of the following statements is correct?
A)Quantity demanded and quantity supplied are independent of price.
B)Price and quantity demanded are directly related.
C)Price and quantity supplied are directly related.
D)Price and quantity supplied are inversely related.

Question

Refer to the above graph.Which of the following statements is correct?
A)Quantity demanded and quantity supplied are independent of price. 
B)Price and quantity demanded are directly related. 
C)Price and quantity supplied are directly related. 
D)Price and quantity supplied are inversely related.

Quizplus · Accepted Answer

As price increases, the quantity supplied also increases, indicating a direct relationship between the two variables. There is no information given about the relationship between price and quantity demanded or about the independence of quantity demanded and quantity supplied from price.

Refer to the Above Graph