EC120 Lecture 2: EC 120 Lecture 2: EC120 – Lecture #2: A Brief Review of Graphing & Thinking Like An Economist

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Ec120 lecture #2: a brief review of graphing & thinking like an economist. Three common types of graphs: pie chart, bar graph, time-series graph. Economists are often concerned with the relationships between variables. The coordinate system makes possible the display of two variables on a single graph. The coordinate system makes the correlation between the two variables easy to visualize. I. e. curves in constant of a curve. Economists also often look at how one variable affects another, holding everything else the coordinate system. To see how this is done, let"s consider one of the most important graphs in economics, the demand curve (has a negative slope) Normal goods are goods in which the demand goes down as income goes down. The slope of a line is the ratio of the vertical distance covered to the horizontal distance (demand curve shifts left) Slopes covered as we move along the line: to calculate slope, slope= y2 y1 x2 x1.

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