Question

1.Create a graph for the demand for starfish using the following data table:

Quantity/Price of Starfish

Quantity (X axis) of Starfish in dozens	Price (Y axis) of Starfish per dozen
0	8
2	6
3	5
5	2
7	1
9	0

2. Is the relationship between the price of starfish and the quantity demanded inverse or direct? Why?
3. How many dozens of starfish are demanded at a price of five?
4. Calculate the slope of the line between the prices of 6 (quantity of 2) and 1 (quantity of 7) per dozen.
5. Describe the line when there is a direct relationship between price and quantity.

Answer 1

By plotting these points : Quantity demanded on X-axis and Price on Y-axis, we get the demand curve as shown below:

Dor (u ve 2- În douw

1. The relationship between the price of starfish and the quantity demanded is inverse because at higher prices ,quantity demanded is lower and at lower prices ,quantity demanded is higher.

2. At a price of 5 , quantity demanded of starfish= 3 dozens of starfish.

3. Slope of the line= (Change in price/Change in quantity demanded)= (1-6)/ (7-2) = -1

4. When there is direct relationship between price and quantity ,then the slope of the line will be positive and line will be rise upwards to the right. This is the case for the supply curve because at lower prices, producers would like to produce less and at higher prices ,they would supply more.