Refer to the above graph. From the economists' perspective, which is the independent variable and which is the dependent variable?
A) Price is the independent variable and quantity demanded is the dependent variable
B) Price is the dependent variable and quantity demanded is the independent variable
C) Both price and quantity demanded are independent variables
D) Both price and quantity demanded are dependent variables

Question

Refer to the above graph. From the economists' perspective, which is the independent variable and which is the dependent variable?
A) Price is the independent variable and quantity demanded is the dependent variable 
B) Price is the dependent variable and quantity demanded is the independent variable 
C) Both price and quantity demanded are independent variables 
D) Both price and quantity demanded are dependent variables

Quizplus · Accepted Answer

In economics, price is typically considered the independent variable and quantity demanded is considered the dependent variable. This is because the quantity demanded of a good or service is influenced by its price; as the price of a good or service increases, the quantity demanded typically decreases (assuming other factors remain constant). Therefore, economists would view price as the cause or independent variable, and quantity demanded as the effect or dependent variable.

Refer to the Above Graph