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Problem Set 1
Suggested Solutions
QUESTION 1
a) Graph the line given by the equation y =102x, with y on the vertical axis.
See graph below.
b) What is the slope of this line? What would be the slope if you put x on the vertical
axis?
The slope is 2.
If x is on the vertical axis, the slope is 0.5
c) Are x and y positively or negatively related?
Negatively
d) On the same graph, show the line given by the equation y =12  3x.
See graph below.
e) What is the slope of this line? Is this line steeper or flatter than the first?
The slope is 3. The line is steeper than the first one.
f) Solve algebraically for the value of x where these two lines cross.
102x=123x
x=2
Replacing in any of the 2 equations above:
y=102*2=123*2=6
=> The lines cross at (2,6)
g) Write the equation for the line with the same slope as the one in part d, but having
a yintercept that is 3 units higher. Graph this line along with the others.
y =15  3x
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 Spring '07
 Hansen
 Economics, Microeconomics

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