If the line graph indicates that Product B's sales are inversely related to Prod

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Question: If the line graph indicates that Product B\'s sales are inversely related to Product A\'s, what can be inferred?

Options:

Correct Answer: Both products are substitutes

Solution:

An inverse relationship suggests that as sales of Product A increase, sales of Product B decrease, indicating they are substitutes.

If the line graph indicates that Product B's sales are inversely related to Product A's, what can be inferred?

If the line graph indicates that Product B's sales are inversely related to Product A's, what can be inferred?

Step 1: Understand what 'inversely related' means. It means that when one thing goes up, the other goes down.
Step 2: Look at the sales of Product A. If the sales of Product A increase, it means more people are buying Product A.
Step 3: Since the sales of Product B are inversely related to Product A, when Product A's sales go up, Product B's sales must go down.
Step 4: This suggests that Product A and Product B are substitutes, meaning people choose one over the other.

Inverse Relationship – An inverse relationship means that when one variable increases, the other decreases.
Substitutes – Products that can replace each other; an increase in the sales of one leads to a decrease in the sales of the other.