Micro economic GRAPHS IN ECONOMICS讲解材料.ppt

1;A graph reveals a relationship. A graph represents “quantity” as a distance. A two-variable graph uses two perpendicular scale lines. The vertical line is the y-axis. The horizontal line is the x-axis. The zero point in common to both axes is the origin.; ;Scatter Diagrams A scatter diagram plots the plots the value of one variable against the value of another variable for a number of different values of each variable. A scatter diagram reveals whether a relationship exists between the two variables. Figure A1.3 (on the next slide) shows some data on box office tickets sold and the number of DVDs sold for nine of the most popular movies in 2009. The table gives the data and the graph describes the relationship between box office tickets sold and DVD sales.;Point A tells us that Star Trek sold 34 million tickets at the box office and 6 million DVDs. The points reveals that larger box office sales are associated with larger DVD sales.;Figure A1.4(a) is a scatter diagram of income and expenditure, on average, during a ten-year period. Point A shows that in one year, income was $31 thousand and expenditure was $30 thousand. The graph shows that as income increases, so does expenditure, and the relationship is a close one.;Figure A1.4(b) is a scatter diagram of inflation and unemployment in the United States during the 2000s. The points for 2000 to 2008 show no relationship between the two variables. But the high unemployment rate of 2009 brought a low inflation rate that year.;Graphs are used in economic models to show the relationship between variables. The patterns to look for in graphs are the four cases in which Variables move in the same direction. Variables move in opposite directions. Variables have a maximum or a minimum. Variables are unrelated.;Variables That Move in the Same Direction A relationship between two variables that move in the same direction is called a positive relationship or a direct relationship. A line that slopes upward shows a posi