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What type of relationship is characterized by a decrease in one variable with an increase in another?

  1. Inverse relationship

  2. Direct relationship

  3. Constant relationship

  4. Causal relationship

The correct answer is: Inverse relationship

An inverse relationship is characterized by a situation where an increase in one variable results in a decrease in another variable. This type of relationship indicates that the two variables move in opposite directions. For example, if you were to consider the relationship between the price of a product and the quantity demanded, typically as the price goes up, the quantity demanded goes down, illustrating an inverse relationship. In contrast, a direct relationship would show that both variables move in the same direction; as one increases, the other also increases. A constant relationship implies that one variable remains unchanged regardless of the changes in the other variable. A causal relationship suggests that changes in one variable directly cause changes in another, but it does not specify the direction of the change. In summary, the defining characteristic of an inverse relationship is the opposing movement of the variables, which is the reason it is the correct answer.