Refer to the following graph:

-Suppose price rises from $90 to $110. Using representative arrows, the price effect is a relatively ________ (short, long) arrow pointing _______ (upward, downward).
A) short; upward
B) short; downward
C) long; upward
D) long; downward

Question

Refer to the following graph:
 
-Suppose price rises from $90 to $110. Using representative arrows, the price effect is a relatively ________ (short, long) arrow pointing _______ (upward, downward).
A) short; upward 
B) short; downward 
C) long; upward 
D) long; downward

Quizplus · Accepted Answer

The price effect is a relatively short arrow pointing upward because when the price rises, the quantity demanded decreases.

Refer to the Following Graph