Question

Which of the following is an example of a relationship with a negative slope?

a.
​ less items purchased when quality decreases

b.
​ spending increases as incomes rise

c.
​ more items purchased when prices drop

d.
​ more items sold when quality improves

Answer 1

c. ​ More items purchased when prices drop

Step-by-step explanation:

Lets determine the two variables and their relation in each of the cases.

a)

Quality decreases. Quantity purchased decreases. Both item decreasing is a positive relation and thus would not yield a negative slope.

b)

Spending rises. Income rises. Both items increasing is a positive relation and thus would not yield a negative slope.

c)

Purchases increase. Price decrease. One item increases while the other decreases and thus is a negative relationship with a negative slope.

d)

Qty sold increases. Quality increases. Both items increasing is a positive relation and thus would not yield a negative slope.

Hope that helps.