The sign of the slope of a graph in economic analysis is important because it?

By: |Published on: Oct 22|Categories: Economics JAMB| 0 comments

A. shows whether a good is normal or inferior
B. shows the relationship between variables
C. reveals the magnitude of the change between variables
D. helps to determine the unit of measurement of variables

Correct Answer:

Option C – reveals the magnitude of the change between variables

Explanation

The concept of slope is important in economics because it is used to measure the rate at which changes are taking place. It shows how things change and about how one item changes in response to a change in another item.

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