Section 1 Appendix: Graphs in Economics AP Economics Mr. Bernstein Section 1 Appendix: Graphs in Economics September 12, 2014

AP Economics Mr. Bernstein Plotting Points on a Two-Variable Graph Horizontal axis is X-axis Vertical axis is Y-axis Origin is where axes meet, variables = zero X-axis is the independent variable Y-axis is the dependent variable Example: Temperature and soda sales

AP Economics Mr. Bernstein Curves on a Graph Linear Relationship Positive Relationship Negative Relationship Examples: Temperature and soda sold, Temperature and Hot Chocolate sold

AP Economics Mr. Bernstein Slope of a Linear Curve Measure of steepness, or how strong the effect of the independent variable is on the dependent variable…aka sensitivity or delta Change in y / Change in x = slope Slope of horizontal line is zero Slope of vertical line is infinite

AP Economics Mr. Bernstein Slope of a Linear Curve

AP Economics Mr. Bernstein Nonlinear Curves Positive Increasing Slope Positive Decreasing Slope Negative Increasing Slope (concave) Negative Decreasing Slope (convex)

AP Economics Mr. Bernstein Nonlinear Curves

AP Economics Mr. Bernstein Slope of Nonlinear Curves Slope is changing as you move along the curve Slope is typically expressed as the slope between two points Curves can have maximum or minimum points (where slope changes from positive to negative or vice versa)

AP Economics Mr. Bernstein Calculating Area Below or Above a Linear Curve Measure height and base of right triangle, multiply, then divide by 2

AP Economics Mr. Bernstein Graphs That Depict Numerical Information Time-Series Scatter Diagrams Pie Charts Bar Charts and Histograms