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01 Appendix
Limits, Alternatives, and Choices
McGrawHill/Irwin Copyright © 2012 by The McGrawHill Companies, Inc. All rights reserved.
Construction of a Graph
Table Graph
Income Consumption Point
$ 0 $ 50 a $400
100 100 b
300
200 150 c e
300 200 d 200 d c
400 250 e 100 b a
0 $100 200
300 400
Income (Y)
LO7 1App-2
Direct and Inverse Relationships • Direct relationship
• Both variables move up or down together
LO7 1App-3
Direct and Inverse Relationships
•Inverse relationship
• Variables move opposite of each other
LO7 1App-4
Slope of a Line
• Positive slope of a Vertical Change
Horizontal Change
straight line
=+100 = 2 = 0.5
$400
300
200
50 Vertical Change
100 100
Horizontal Change
0 $100 200 300 400 Income (Y)
LO7 1App-5
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