1. GRAPHS AND THEIR MEANING
CHAPTER 1
APPENDIX
GRAPHS AND THEIR MEANING
1A - 1
Copyright McGraw-Hill/Irwin, 2005

2. Construction of a Graph
Table of Values
INCOME
(per week)
CONSUMPTION
(per week)
$ 0
100
200
300
400
$ 50
100
150
200
250
BACK
TERMS
1A - 2
Copyright McGraw-Hill/Irwin, 2005

3. Construction of a Graph
Table of Values
INCOME
(per week)
CONSUMPTION
(per week)
Vertical Axis
$400
300
200
100
$ 0
100
200
300
400
$ 50
100
150
200
250
CONSUMPTION (C)
BACK
TERMS
1A - 3
Copyright McGraw-Hill/Irwin, 2005

4. Construction of a Graph
Table of Values
INCOME
(per week)
CONSUMPTION
(per week)
Vertical Axis
$400
300
200
100
$ 0
100
200
300
400
$ 50
100
150
200
250
CONSUMPTION (C)
Horizontal Axis
INCOME (Y)
BACK
TERMS
1A - 4
Copyright McGraw-Hill/Irwin, 2005

5. Exists Between Consumption & Income
A Direct Relationship...
Exists Between Consumption & Income
INCOME
(per week)
CONSUMPTION
(per week)
$400
300
200
100
C=50+.5Y
$ 0
100
200
300
400
$ 50
100
150
200
250 a
CONSUMPTION (C) b c d e c d e b a
INCOME (Y)
BACK
TERMS
1A - 5
Copyright McGraw-Hill/Irwin, 2005

6. An Inverse Relationship... Exists Between Ticket Prices & Attendance
(thousands)
P=50-2.5Q a
$50 40 30 20 10
$ 50 40 30 20 10 4 8 12 16 20 a b b
TICKET PRICE (P) c c d d e e f f
ATTENDANCE IN THOUSANDS (Q)
BACK
TERMS
1A - 6
Copyright McGraw-Hill/Irwin, Inc. 2005

7. Variable Dependency Can you locate the Dependent and
Independent Variables?
BACK
TERMS
1A - 7
Copyright McGraw-Hill/Irwin, 2005

8. Slope of the Line is...
Vertical Change
Horizontal Change
INCOME
(per week)
CONSUMPTION
(per week)
Positive Slope
$400
300
200
100
$ 0
100
200
300
400
$ 50
100
150
200
250 50
100
= .5
CONSUMPTION (C)
INCOME (Y)
BACK
TERMS
1A - 8
Copyright McGraw-Hill/Irwin, 2005

9. Slope of the Line is...
Vertical Change
Horizontal Change
TICKET
PRICE
ATTENDANCE
(thousands)
Negative Slope
$50 40 30 20 10
$ 50 40 30 20 10 4 8 12 16 20
-10 +4
= -2.5
TICKET PRICE (P)
ATTENDANCE IN THOUSANDS (Q)
BACK
TERMS
1A - 9
Copyright McGraw-Hill/Irwin, 2005

10. Slope of a Line MEASUREMENT UNITS MARGINAL ANALYSIS
INFINITE & ZERO SLOPES
Price of Bananas
Purchases of Watches
Consumption
Divorce Rate
Slope = Zero
Slope =
Infinite
BACK
TERMS
1A - 10
Copyright McGraw-Hill/Irwin, 2005

11. Slope of a Line In Equation Form y = a + bX C = 50 + .5Y
P = Q
BACK
TERMS
1A - 11
Copyright McGraw-Hill/Irwin, 2005

12. Slope of a Nonlinear Curve...
The Slope of a Straight Line
Drawn Just Tangent to the Curve a Q P 20 15 10 5 A b B a b
BACK
TERMS
1A - 12
Copyright McGraw-Hill/Irwin, 2005

13. Can You Identify... Vertical & Horizontal Axes? BACK TERMS 1A - 13
Copyright McGraw-Hill/Irwin, 2005

14. Can You Identify... Vertical Intercept? BACK TERMS 1A - 14
Copyright McGraw-Hill/Irwin, 2005

15. Can You Identify... Slope of the Line? BACK TERMS 1A - 15
Copyright McGraw-Hill/Irwin, 2005

16. Can You Identify... Tangent? BACK TERMS 1A - 16
Copyright McGraw-Hill/Irwin, 2005

17. Can You Identify... Direct & Inverse Relationships? BACK TERMS 1A - 17
Copyright McGraw-Hill/Irwin, 2005

18. slope of a straight line
Key Terms
horizontal axis
vertical axis
direct relationship
inverse relationship
independent variable
dependent variable
slope of a straight line
vertical intercept
END SHOW
Copyright McGraw-Hill/Irwin, 2005

19. THE ECONOMIZING PROBLEM
CHAPTER 2
THE
ECONOMIZING
PROBLEM
COMING SOON
Copyright McGraw-Hill/Irwin, 2005