graphs and their meaning appendix 1a - 1copyright mcgraw-hill/irwin, 2002
TRANSCRIPT
GRAPHS AND THEIR MEANING
APPENDIX
1A - 1 Copyright McGraw-Hill/Irwin, 2002
INCOME(per week)
$ 0100200300400
$ 50100150200250
CONSUMPTION(per week)
Table of ValuesConstruction of a Graph
1A - 2BACK TERMS
Copyright McGraw-Hill/Irwin, 2002
INCOME(per week)
$ 0100200300400
$ 50100150200250
CONSUMPTION(per week)
Table of ValuesConstruction of a Graph
1A - 3BACK TERMS
CO
NS
UM
PT
ION
(C
)
$400
300
200
100
Vertical Axis
Copyright McGraw-Hill/Irwin, 2002
INCOME(per week)
$ 0100200300400
$ 50100150200250
CONSUMPTION(per week)
Table of ValuesConstruction of a Graph
1A - 4BACK TERMS
CO
NS
UM
PT
ION
(C
)
0 100 200 300 400INCOME (Y)
$400
300
200
100
Vertical Axis
Horizontal Axis
Copyright McGraw-Hill/Irwin, 2002
INCOME(per week)
$ 0100200300400
$ 50100150200250
CONSUMPTION(per week)
Exists Between Consumption & Income
CO
NS
UM
PT
ION
(C
)
0 100 200 300 400INCOME (Y)
$400
300
200
100
a
b
c
d
ea
b
cd
e
C=50+.5Y
A Direct Relationship...
1A - 5BACK TERMS
Copyright McGraw-Hill/Irwin, 2002
TICKETPRICE
$ 50 40302010
0
048
121620
ATTENDANCE(thousands)
An Inverse Relationship...Exists Between Ticket Prices & Attendance
TIC
KE
T P
RIC
E (
P)
0 4 8 12 16 20ATTENDANCE IN THOUSANDS (Q)
$50
40
30
20
10
a
b
c
d
e
a
b
c
f
e
P=50-2.5Q
f
d
1A - 6BACK TERMS
Copyright McGraw-Hill/Irwin, 2002
Can you locate theDependent andIndependent Variables?
Variable Dependency
1A - 7BACK TERMS
Copyright McGraw-Hill/Irwin, 2002
Slope of the Line is...Vertical Change
Horizontal Change
50100 = .5
1A - 8BACK TERMS
INCOME(per week)
$ 0100200300400
$ 50100150200250
CONSUMPTION(per week)
CO
NS
UM
PT
ION
(C
)
0 100 200 300 400INCOME (Y)
$400
300
200
100
Positive Slope
Copyright McGraw-Hill/Irwin, 2002
Slope of the Line is...Vertical Change
Horizontal Change
-10+4 = -2.5
1A - 9BACK TERMS
Negative SlopeTICKETPRICE
$ 50 40302010
0
048
121620
ATTENDANCE(thousands)
TIC
KE
T P
RIC
E (
P)
0 4 8 12 16 20
ATTENDANCE IN THOUSANDS (Q)
$50
40
30
20
10
Copyright McGraw-Hill/Irwin, 2002
MEASUREMENT UNITS MARGINAL ANALYSIS INFINITE & ZERO SLOPES
Slope of a Line
1A - 10BACK TERMS
Pri
ce o
f B
anan
as
Purchases of Watches
Con
sum
pti
on
Divorce Rate
Slope =Infinite
Slope = Zero
Copyright McGraw-Hill/Irwin, 2002
In Equation Form
C = 50 + .5Y P = 50 - 2.5 Q
Slope of a Line
1A - 11BACK TERMS
y = a + bX
Copyright McGraw-Hill/Irwin, 2002
Slope of a Curved Line is...The Slope of a Straight Line
Drawn Just Tangent to the Curve
B
b
b
PP 20
15
10
5
05 10 15 20
A
a
a
1A - 12BACK TERMS
Copyright McGraw-Hill/Irwin, 2002
Vertical & Horizontal Axes?
1A - 13BACK TERMS
Can You Identify...
Copyright McGraw-Hill/Irwin, 2002
Vertical Intercept?
1A - 14BACK TERMS
Can You Identify...
Copyright McGraw-Hill/Irwin, 2002
Slope of the Line?
1A - 15BACK TERMS
Can You Identify...
Copyright McGraw-Hill/Irwin, 2002
Tangent?
1A - 16BACK TERMS
Can You Identify...
Copyright McGraw-Hill/Irwin, 2002
Direct & InverseRelationships?
1A - 17BACK TERMS
Can You Identify...
Copyright McGraw-Hill/Irwin, 2002
1A - 18BACK TERMS
Copyright McGraw-Hill/Irwin, 2002
horizontal axisvertical axis
direct relationshipinverse relationship
independent variabledependent variable
slope of a straight linevertical intercept
END SHOW
Copyright McGraw-Hill/Irwin, 2002
THEECONOMIZING
PROBLEM
CHAPTER 2
COMING SOON
Copyright McGraw-Hill/Irwin, 2002