Question 1

As price increases, the number of pairs of earrings sold tends to decrease.

This statement accurately reflects the negative correlation typically observed in demand and price relationships, particularly evident in the scatterplot provided.

A) As price increases, the number of pairs of earrings sold tends to remain constant.

This option is incorrect because it suggests that price changes do not affect sales. However, the scatterplot indicates a trend where sales fluctuate in response to price changes, contradicting the notion of constant sales.

B) As price increases, the number of pairs of earrings sold tends to decrease.

This option is correct as it aligns with the common economic principle of demand, which states that higher prices generally result in lower quantities sold. The scatterplot illustrates this inverse relationship clearly.

C) As price increases, the number of pairs of earrings sold tends to increase.

This option is incorrect because it contradicts the established relationship between price and demand. The scatterplot demonstrates that increased prices lead to a decrease in the number of pairs sold, not an increase.

D) As price decreases, the number of pairs of earrings sold tends to remain constant.

This option is also incorrect as it implies that lower prices do not influence sales numbers. The data in the scatterplot would likely show an increase in sales with decreasing prices, rather than remaining constant.

E) As price decreases, the number of pairs of earrings sold tends to decrease.

This option is incorrect because it presents a relationship contrary to the law of demand. Generally, a decrease in price would lead to an increase in the quantity sold, as indicated by typical market behavior.

Conclusion

The correct answer, indicating that as price increases, the number of pairs of earrings sold tends to decrease, aligns with established economic theories regarding demand. All other options fail to represent the observed trends in the scatterplot, illustrating the importance of understanding price elasticity in consumer behavior.