Short Review - along a curve and shifting a curve Special Cases 1 Suppose ൌ ܾܺ Then When ܾ ൌ ͳ we have a 45 degrees line ൌ ܺ The

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GRAPHICAL ANALYSIS: A COUPLE OF SPECIAL CASES In this short note a specify a few "special" cases. Review them and make sure it is all clear. Review Today, we considered the following function: ܻ ൌ ܽ ൅ ܾܺ ൅ ܼܿ For given ܽǡ ܾ and ܿ , we learned how to graph the relationship between ܻ and ܺ , for a given ܼ . Similarly, we could plot the relationship between ܻ and ܼ , for a given ܺ . We emphasized the concept of slope and intercept, and the related concept of moving
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Unformatted text preview: along a curve and shifting a curve. Special Cases 1. Suppose ܻ ൌ ܾܺ Then: When ܾ ൌ ͳ , we have a 45 degrees line: ܻ ൌ ܺ . The relation between Y and X is 1:1. 2. If ܻ ൌ ܽ , any change in X has no effect on Y, graphically Note, I assumed a>0. The slope is equal to zero. 3. If ܺ ൌ ܽ , any change in Y has no effect on X, graphically Note, I assumed a> 0. The slope is infinite. Y X Y = X b > 1 b < 1 Y X X Y a a...
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This note was uploaded on 01/12/2012 for the course ECON AS.180.101 taught by Professor Maccini during the Fall '08 term at Johns Hopkins.

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