ECN 504 Study Guide - Comprehensive Final Guide: Partial Derivative, Marginal Product, Product Rule
29 Nov 2016
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Document Summary
Functions and economic relationships (cid:149) a function is a relationship (or mapping) between two or more variables whereby the value of one variable (the dependent variable) is determined by the values taken by the other variables (the independent variables). (cid:149) the general notation for a function is a follows: y(cid:3404)(cid:1858)(cid:4666)(cid:1850),(cid:1851)(cid:4667) where y is the dependent variable. Linear function (cid:149) a two variable linear function can be written as follows: where a and b are two parameters which can be assigned fixed values. To draw the graph of a linear function we only need to calculate and plot two points and then simply join them up with a straight line. The slope of a linear function is equal to the change in the dependent variable (y) divided by the change in the independent variable (x) Slope shows the rate of change of y with respect to a unit change in x:
