The following points showing different price-quantity combinations are plotted on a graph: ($1.00 and 40 units), ($2.00 and 30 units), ($4.00 and 20 units). A line connecting these points would be:
A) upward sloping.
B) downward sloping.
C) perfectly vertical.
D) perfectly horizontal.

Question

Quizplus · Accepted Answer

The line is downward sloping because as the price increases, the quantity demanded decreases, indicating a negative relationship between price and quantity.

The Following Points Showing Different Price-Quantity Combinations Are Plotted on a Graph