After collecting many years of data on the price and quantity of wine sales, you decide to plot the data on a graph with quantity on the x-axis (horizontal axis) and price on the y-axis (vertical axis). The graph shows price and quantity increasing together over the period of your data, and that surprises you because that seems to violate the Law of Demand. You know that true violations of the Law of Demand are rare, though, so you begin to think about an alternative explanation for the pattern in the data. Draw a graph below that fits the description of the data above. (You can’t do this precisely since you don’t have data. Just draw a graph that “fits” the description.) Describe in words and incorporate on your graph a plausible explanation for the upward-sloping pattern in the data. Make sure your written explanation aligns with your graphical explanation.
After collecting many years of data on the
Draw a graph below that fits the description of the data above. (You can’t do this precisely since you don’t have data. Just draw a graph that “fits” the description.)
Describe in words and incorporate on your graph a plausible explanation for the upward-sloping pattern in the data. Make sure your written explanation aligns with your graphical explanation.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
