As the price of home heating oil rises,families buy less home heating oil.Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationship.

Question

Quizplus · Accepted Answer

When the price of a good increases, the quantity demanded of that good decreases. This is known as a negative relationship between price and quantity, also called a downward-sloping demand curve. Thus, the scatter diagram with price on the vertical axis and quantity on the horizontal axis will show a negative relationship.

As the Price of Home Heating Oil Rises,families Buy Less