Briefly explain the use of graphs as a way to represent economic relationships.

Question

Briefly explain the use of graphs as a way to represent economic relationships. What is an inverse relationship? How does it graph? What is a direct relationship? How does it graph? Graph and explain the relationships (other things equal) you would expect to find between (a) the number of inches of rainfall per month and the sale of umbrellas (b) the price of bottled water and the number of bottles sold per year, and (c) the popularity of an entertainer and the price of her concert tickets. In each case cite and explain how variables other than those specifically mentioned might upset the expected relationship. Is your grapgh in part B above consistent with the fact that historically the quantity and price of bottled water have both increased? if not explain the difference

Explanation / Answer

Briefly explain the use of graphs as a way to present economic relationships. What is an inverse relationship? How does it graph? What is a direct relationship? How does it graph? Graph and explain the relationships you would expect to find between (a) the number of inches of rainfall per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of a music artist and the price of her concert tickets.

            In each case cite and explain how variables other than those specifically mentioned might upset the expected relationship. Is your graph in part b consistent with the fact that, historically, enrollments and tuition have both increased? If not, explain any difference.

            Graphs can be used to illustrate the relationship between two sets of data. An inverse relationship is when the two variables change in opposite directions. The line is downward sloping. A direct relationship is when the two variables change in the same direction. The line is upward sloping. Statements (a) and (c) illustrate direct relationships. Statement (b) illustrates an inverse relationship. The inverse relationship is assuming that everything else remains equal.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.