LS 2 - APPENDIX Graphs in Economics 1 Graphing Data A graph...

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Graphs in Economics APPENDIX 1
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Graphing Data A graph reveals a relationship. A graph represents “quantity” as a distance. A two-variable graph uses two perpendicular scale lines. The vertical line is the y -axis. The horizontal line is the x -axis. The zero point in common to both axes is the origin .
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Graphing Data Economists use three types of graph to reveal relationships between variables. They are ± Time-series graphs ± Cross-section graphs ± Scatter diagrams
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Graphing Data Time-Series Graphs A time-series graph measures time (for example, months or years) along the x -axis and the variable or variables in which we are interested along the y -axis. The time-series graph on the next slide shows the price of gasoline between 1973 and 2006. The graph shows the level of the price, how it has changed over time, when change was rapid or slow, and whether there was any trend.
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Graphing Data
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Graphing Data Cross-Section Graphs A cross-section graph shows the values of a variable for different groups in a population at a point in time. The cross-section graph on the next slide enables you to compare the number of people who live in 10 popular leisure activities in the United States.
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Graphing Data
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Graphing Data Scatter Diagrams A scatter diagram plots the value of one variable on the x -axis and the value of another variable on the y -axis. A scatter diagram can make clear the relationship between two variables. The three scatter diagrams on the next slide show
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LS 2 - APPENDIX Graphs in Economics 1 Graphing Data A graph...

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