Two distinctions, categorical and continuous are usually sufficient. ! Categorical variables consist of separate, indivisible categories (i.e., men/women). ! Continuous variables yield values that fall on a numeric continuum, and can (theoretically) take on an infinite number of values.
- Table 2 lists the quantity supplied of rental videos for various prices. At $5, the producer has an incentive to supply 50 videos. If the price falls to $4 quantity supplied falls to 40, and so on. The figure titled "Supply Curve" plots this positive relationship between price and quantity supplied.