Is the relationship between the price of pies and the number of pies Jacob buys a positive relationship or a negative relationship?

Question

Mathematics

Genesis Holland

26 February, 04:33

Is the relationship between the price of pies and the number of pies Jacob buys a positive relationship or a negative relationship?

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Answers (1)

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Mike Chung · Answer 1

The correct answer is negative.

Step-by-step explanation:

To begin with, in microeconomics the theory of the demand establishes that there is an inversely proportional relationship between the demand of a good and its price, therefore stating that when the price of a good increases the demand of it will decrease and when the price of a good decreases the demand of it will increase.

Secondly, the graphical representation of that relationship between those two concepts, the price and demand of a good, is also known as the demand curve. This curve has negative slope in its graphic establishing the kind of relationship they share.

Finally, once said that, it is understood that if Jacob buy pies at a certain price will obtain a determinate number of pies and when the price increases the number of pies he will be able to buy will decrease and therefore it is a negative relationship.