Graphreview

Graphreview - Graph Review for EC 1 Throughout this course you often need to read and draw graph The purpose of these class notes is to review the

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Graph Review for EC 1 Throughout this course, you often need to read and draw graph. The purpose of these class notes is to review the basic aspects of graphing that will be used throughout the course. How to read and draw a two variable graph is discussed below. The topics that you should master are: 1) Coordinate System 2) Linear Graph 3) Non-linear Graph 1. Coordinate System We can use the coordinate system to summarize the relationship between 2 variables as follows. As far as which variable should be in the y-axis or on the x-axis (if there is causation between two variables, i.e. a change in one variable determines the change in another), the convention is that the y-variable or y-axis is the dependent variable, whereas the x- variable or x-axis is the independent variable. In other words, the change in x will result in the change in y, not the other way around. However, the readers should take the convention with caution because sometimes we do not follow this convention in economics. For example, we put quantity – a dependent variable – in the x-axis and price – an independent variable – in the y-axis . On the other hand, we put consumption – a dependent variable – in the y-axis and income – an independent variable – in the x- axis . 2. Linear Graph When the two variables have a linear relationship (an increase in one unit of x will result in a constant increase in y at any value of x), we can use the straight line to summarize the relationship between the two as follows: y = ax + b Where y = variable in the y-axis x = variable in the x-axis values (-3,3) (4,7) origin (0,0) y x x y + - + -
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2 a = slope of the linear graph (constant value) = x y Δ Δ b = vertical intercept of the linear graph (the value of y when x is 0) Hence, we can represent the above equation using a linear graph as follows. s l o p e = a = 7 2 16 4 5 12 2 7 4 16 = = = Δ Δ x y Now, let us compare different graphs. 2.1
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This note was uploaded on 03/20/2008 for the course ECON 1 taught by Professor Nagata during the Fall '08 term at UCLA.

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Graphreview - Graph Review for EC 1 Throughout this course you often need to read and draw graph The purpose of these class notes is to review the

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