Exhibit 1A-3 Straight line

Straight line AB in Exhibit 1A-3 is a downward sloping line illustrating:
A) a direct relationship between X and Y.
B) an inverse relationship between X and Y.
C) X and Y are unrelated variables.
D) the ceteris paribus assumption.

Question

Exhibit 1A-3 Straight line

Straight line AB in Exhibit 1A-3 is a downward sloping line illustrating:
A) a direct relationship between X and Y. 
B) an inverse relationship between X and Y. 
C) X and Y are unrelated variables. 
D) the ceteris paribus assumption.

Quizplus · Accepted Answer

The downward slope of the line indicates that as the value of X increases, the value of Y decreases, which is an inverse relationship between X and Y.

Exhibit 1A-3 Straight Line