# Question #9b8ac

##### 1 Answer

Jun 10, 2016

#### Answer:

This is similar to production in a factory.

There is a fixed cost even if there is no production. Also the cost of production comes down as the quantity of production increases.

#### Explanation:

The given graph is a straight line which can be represented by the following equation

This equation implies that price is directly related to the quantity. Notice that even for quantity

If we see closely as shown by the red lines, we observe that as the quantity increases total price falls. Indicating that slope