If price (P) and quantity (Q) are directly related, this means that
A) a change in Q will alter P, but a change in P will not alter Q.
B) if P increases, Q will decrease.
C) if P increases, Q will also increase.
D) an increase in P will cause Q to change, but the direction in which Q changes cannot be predicted.

Question

Quizplus · Accepted Answer

When price (P) and quantity (Q) are directly related, an increase in P will cause an increase in Q as well. This is known as a direct relationship or positive correlation. Option A is incorrect because a change in P can affect Q, as seen in option C. Option B is incorrect because it suggests an inverse relationship or negative correlation between P and Q. Option D is incorrect because in a direct relationship, the direction of change in Q can be predicted - it will increase as P increases.

If Price (P) and Quantity (Q) Are Directly Related, This