《Economics from Miss Chen》Chp0.pptVIP

GRAPHING 1. Graphs of a Single Variable Pie Chart Bar Graph Time-Series Graph (a) Pie Chart (b) Bar Graph (c) Time-Series Graph 2. Graphs of Two Variables: The Coordinate System 3. Curves in the Coordinate System Demand Curve Shift Demand Curves 4. Slope 5. Marginal Change total utility all the benefit and satisfaction for the consumption of goods and services. marginal utility quantity changed of the total utility for adding one unit consumption 6. Consumer Equilibrium Principle of utility maximization that the utility as great as possible utility-maximizing choice consumer equilibrium Conditions of consumer equilibrium marginal utility per dollar spent MU/P = 50/6=8.33 7. Marginal Utility and Demand Price change Demand Income change Demand Price Effect * * Compensation of employees (72%) Corporate profits (12%) Proprietor’s income (8%) Interest income (6%) Rental income (2%) This pie chart shows how US national income is derived from various sources. Income per Person in 2000 United States ($34,100) United Kingdom ($23,550) Mexico ($8,790) India ($2,340) The bar graph compares the average income in four countries. Productivity Index The time-series graph shows the productivity of labor in U.S. businesses from 1950 to 2000. Albert E. (25, 3.5) Alfred E. (5, 2.0) Graph pint average is measured on the vertical axis and study time on the horizontal axis. Albert E. and Alfred E. are represented by various points. We can see from the graph that students who study more tend to get higher grades. Grade Point Average Study Time (hours per week) Income $40,000 $30,000 $20,000 Price 8 novels 5 novels 2 novels $10 12 9 6 9 28 25 22 5 24 21 18 6 20 17 14 7 16 13 10 8 This table shows the number of novels Emma buys at various incomes and prices. For any given level of incomes, the data on price and quantity demanded can be graphed to produce Emma’s demand curve for novels. Quantity of Novels Purchased Price of Novels Quantity of Novels Purchased Dema