shows whether a good is normal or inferior
shows the relationship between variables
reveals the magnitude of the change between variables
helps to determine the unit of measurement of variables
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The correct answer is B, shows the relationship between variables.
In economic analysis, a graph is often used to visually represent the relationship between two variables. The slope of the graph is the measure of the steepness of the line connecting the two variables. The sign of the slope (whether it is positive or negative) shows the direction of the relationship between the two variables.
The sign of the slope of a graph in economic analysis is important because it shows the relationship between variables. A positive slope means that two variables are positively related—that is, when x increases, so does y, and when x decreases, y also decreases. A negative slope means that two variables are negatively related—that is, when x increases, y decreases and vice versa
