Ch 1 The art and science 微观经济学.pptVIP

* Exhibit 3 Median annual earnings of 35- to 44- year-olds with bachelor’s as highest degree by major * Understanding Graphs Origin Horizontal axis Vertical axis Graph Functional relation Dependent variable Independent variable * Exhibit 4 Point a: - 5 units X - 15 units Y Basics of a graph 15 10 5 20 y Vertical axis a b Point b: - 10 units X - 5 units Y 0 Origin 20 15 10 5 x Horizontal axis * Exhibit 5 U.S. Unemployment rate since 1900 * Drawing Graphs Dependent variable Depends on the independent variable Types of relations between variables Positive; direct Negative; inverse Independent; unrelated * a b c d e Exhibit 6; Exhibit 7 Schedule and Graph relating distance traveled to hours driven Hours driven per day Distance traveled per day (miles) a b c d e 1 2 3 4 5 50 100 150 200 250 0 4 3 2 1 Hours driven per day 5 150 100 50 200 Distance traveled per day (miles) 250 Points a through e depict different combinations of hours driven per day and the corresponding distances traveled. Connecting these points graphs a line. * Slopes of Straight Lines Slope Change in vertical variable For a given increase in horizontal variable Slope = Change in the vertical distance/ Increase in the horizontal distance Slope of a straight line The same value along the line * Exhibit 8 (a), (b) Alternative slopes for straight lines (a) Positive relation 0 x 20 10 10 15 20 y 5 10 Slope = 5/10 = 0.5 (b) Negative relation 0 x 20 10 10 3 20 y 10 Slope = - 7 /10 = - 0.7 -7 * Exhibit 8 (c), (d) Alternative slopes for straight lines (c) No relation: zero slope 0 x 20 10 10 15 20 y Slope = 0/10 = 0 (d) No relation: infinite slope 0 x 10 10 20 y 10 Slope = 10 /0 = ∞ 10 * Slope, Units of Measurement, Marginal Analysis Value of slope Depends on units of measurement Measures marginal effects * Exhibit 9 Slope depends on the unit of measure (a) Measured in feet 0 Feet of copper tubing 6 5 5 $6 Total cost 1 1 Slope = 1/1 = 1 (b) Measured in yards 0 Yards of copper tubing 2 1 3 $6 Total cost 3