Introduction to Graphing 1

Flashcards covering key concepts from the lecture on graphing in economics.

Graphing

The visual representation of data to highlight trends and relationships between variables.

Coordinate Grid

A grid used to determine the values of variables on the X-axis and Y-axis.

X-axis

The horizontal line in a graph which represents the independent variable.

Y-axis

The vertical line in a graph which represents the dependent variable.

Upper Right Quadrant

The section of a coordinate grid where both X and Y values are positive.

Positive Relationship

A relationship between two variables in which they both increase or decrease together.

Negative Relationship

A relationship between two variables in which one increases while the other decreases.

Budget Line

A graphic representation of the consumption possibilities available to a consumer based on their income and the prices of goods.

Slope of the Budget Line

The rate at which one variable must change to maintain the balance in expenditure between goods X and Y.

Tradeoff

The concept of sacrificing one good or service for another, typically represented by the slope in economics.

Total Income (I)

The overall money available to a consumer for spending on goods and services.

Price of Good X (Px)

The monetary cost of acquiring one unit of Good X.

Price of Good Y (Py)

The monetary cost of acquiring one unit of Good Y.

Expenditures

The total amount spent on purchasing goods and services, calculated using income and prices.

Consumption Possibilities

The combinations of goods that a consumer can afford based on their income and the prices of those goods.

Slope Formula

The equation that determines the rate of change between the Y variable and X variable in a graph.