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

Economics
JAMB 2012

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

  • 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
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Correct Answer: Option C
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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