Creating, Using, and Interpreting Economic
Graphs:
 Economists love graphs
 A graph represents a theory or idea in a 2 dimensional space
 Linear Graphs
 y = mx + b ==> equation of a straight line
 b is the value where the line crosses the vertical axis
 m is the slope of the line (note
that the slope
remains
constant in a straight line)
vertical
distance between
2 points on the line
m = 
horizontal distance between 2
points
on the line
 Nonlinear Graphs
 y = x^{p} ==> the equation of a
curved line
 where p can be any negative or positive number other
than zero
 the slope of a curved line changes (i.e.,
the slope
does
NOT remain constant)
