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Copyright 2008 The McGraw-Hill Companies1a-1
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix 1
Graphs and Their Meaning
Appendix
Copyright 2008 The McGraw-Hill Companies1a-2
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
Graphs and Their Meaning
Table GraphIncome Consumption Point
$ 0
100
200
300
400
$ 50
100
150
200
250
a
b
c
d
e
Con
sum
ptio
n (C
)
$400
300
200
100
0
Income (Y)$100 200 300 400
a
b
c
d
e
Plot Data Points to Create Graph
Copyright 2008 The McGraw-Hill Companies1a-3
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
Direct and Inverse Relationships
DirectRelationship
InverseRelationship
Both Variables Move Up or Down Together
Variables Move Opposite Each Other
Copyright 2008 The McGraw-Hill Companies1a-4
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
Dependent and Independent Variables
• Independent Variable–The Cause or Source of
Change
• Dependent Variable–The Effect or Result of the
Change in the Independent Variable
• Other Things Equal Assumption
Copyright 2008 The McGraw-Hill Companies1a-5
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
200
150
100
50
0
Slope of a LinePositive Slope of a Straight Line
Slope =Vertical Change
Horizontal Change+50
+100= .5==
12
50 100 150 200
50
100Horizontal Change
VerticalChange
Copyright 2008 The McGraw-Hill Companies1a-6
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
50
40
30
20
10
0
Slope of a LineNegative Slope of a Straight Line
Slope =Vertical Change
Horizontal Change-10+4
==12
4 8 12 16 20
-10
4Horizontal Change
VerticalChange
-2
Copyright 2008 The McGraw-Hill Companies1a-7
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
Slope of a Line• Slopes and Measurement
Units
• Slopes and Marginal Analysis
• Infinite and Zero Slopes
Pri
ces
of
Ban
anas
Purchases of Watches Divorce Rate
Co
nsu
mp
tio
n
Slope = ZeroSlope =Infinite
Copyright 2008 The McGraw-Hill Companies1a-8
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
50
40
30
20
10
0
Slope of a LineEquation of a Straight Line
y = a + bx
4 8 12 16 20
-10
4Horizontal Change
VerticalChange
Vertical Intercept (a)
Slope (b)
Independent Variable (x)
Dep
end
ent
Var
iab
le (
y)
Copyright 2008 The McGraw-Hill Companies1a-9
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
50
40
30
20
10
0
Slope of a LineEquation of a Straight Line
4 8 12 16 20
-10
4Horizontal Change
VerticalChange
Dependent Variable (Q)
Ind
epen
den
tV
aria
ble
(P
)
Economists Put Independent Variable on Vertical Axis
y = a + bx
P = 50 – 2.5QBecomes
Copyright 2008 The McGraw-Hill Companies1a-10
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
20
15
10
5
0
Slope of a Nonlinear CurveSlope is a Tangent Straight Line
5 10 15 20
A
B
b
b
a
a
Tangent at A is the Slope of Line a-a
Tangent at B is the Slope of Line b-b
Copyright 2008 The McGraw-Hill Companies1a-11
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
Key Terms Page
• horizontal axis
• vertical axis
• direct relationship
• inverse relationship
• independent variable
• dependent variable
• slope of a straight line
• vertical intercept
Copyright 2008 The McGraw-Hill Companies1a-12
Graphs and their MeaningDirect and Inverse RelationshipsDependent and Independent VariablesSlope of a LineEquation of a Straight LineSlope of a Curve
Key Terms
End Show
Appendix
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The Market System and the Circular Flow
