The graph below shows the rate of change in sales with respect to advertising ex

Question

The graph below shows the rate of change in sales with respect to advertising expenditures for a certain product where the sales, Q(s), are in units of product for s thousand dollars spent on advertising. Use the graph to determine which of the following is a TRUE statement. Sales are decreasing for advertising expenditures less than $ 5,000.00 and increasing for advertising expenditures greater than $ 5,000.00. Sales are increasing for advertising expenditures less than $ 5,000.00 and decreasing for advertising expenditures greater than $ 5,000.00. Sales are increasing for advertising expenditures less than $ 30,000.00 and decreasing for advertising expenditures greater than $ 30,000.00. Sales are decreasing for advertising expenditures less than $ 30,000.00 and increasing for advertising expenditures greater than $ 30,000.00.

Explanation / Answer

To know whether sales is decreasing or increasing, just take slope of graph at that particular point.

For option A and B. slope of graph for both less than 5000 and greater than 5000 , is positive. i.e. sales is increasing for both condition.

for option C and D : we can see slope is positive for less than 30000 and is negative for greater than 30000.

i.e. increasing for less than 30000 and decreasing for greater than 30000.

So Option C is correct choice

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