Professional Documents
Culture Documents
Working With Graphs in Economics
Working With Graphs in Economics
y = how far up
x = how far along
m = Slope or Gradient (how steep the line is)
b = the Y Intercept (where the line crosses the Y axis)
Change in Y
m =
Change in X
Y Intercept
Example 1
2
m =
= 2
1
Example 2
3
m =
= 3
-1
b=0
This gives us y = 3x + 0
We do not need the zero!
Therefore y = 3x
Using the point (2, -2.7) and the point (3, -1),
the secant this time is steeper still;
in fact, its slope turns out to be 1.7
1.95
This should be almost identical to the slope of
the tangent exactly at (3, -1)
We could try closer points, but you should be
able to guess what the slope of the tangent at
(3, -1) will be ...
Here are the slopes of the secants we've found
so far, as we got closer and closer to the tangent
line:
0.68, 1, 1.35, 1.7, 1.8, 1.95 ...
It looks very much like the slopes are getting closer and closer to 2
We could be sure of this by doing the same exercise all over again, from the other side
of (3, -1). If we did, we'd find that the slopes got smaller and smaller as our secant lines
got closer and closer to the tangent; the slopes would again seem to approach the value
CONCLUSION: