Chapter 1A, Problem 1CYU

To determine

The question requires us to determine the diagram and its slope along with the correct labels on the x-axis and y-axis.

Explanation of Solution

The given options are:

1. When the price of a movie rises, its demand falls because fewer people go to see the movie. This statement represents the downward-sloping demand curve given in panel “a”.
Here, the number of movie tickets would appear on the x-axis while the price on the y-axis.

Slope = negative.

2. The statement that experienced workers are getting higher wages while the workers with less experience are getting lower wages represents the upward-sloping curve given in panel “c”.

Here, the period of experience would appear on the x-axis while the wage on the y-axis.

Slope = positive.

3. The statement “Americans consume the same number of hotdogs per day regardless of the temperature outside” represents the vertical curve, parallel to the y-axis given in panel “b”.

Here, the number of hotdogs would appear on the x-axis while the temperature on the y-axis.

Slope = undefined.

4. Consumers are buying more frozen yogurts when the price of ice cream goes up. This statement represents the upward-sloping curve given in panel “c”.
Here, the quantity of frozen yogurt would appear on the x-axis while the price of ice cream on the y-axis.

Slope = positive.

5. When there is no relationship between two factors, the curve and its slope can’t be determined.
6. “Americans consume the same quantity of salt regardless of its price”. This statement represents the vertical curve, parallel to the y-axis given in panel “b”.
Here, the quantity of salt would appear on the x-axis while the price on the y-axis.

Slope = undefined.