Why are slopes of lines important in economics




















Suppose A x 1 y 1 and B x 2 y 2 then their slope will be. Here, x 1 and x 2 are x-coordinates and y 1 and y 2 are y coordinates on X-axis and Y-axis respectively. The slope of the line can be a positive or negative value. The subscripts of x and y are only used to identify the two points.

They are not values or exponents, the points can be given any names. From the above figure, the slope of the straight line joining the points A x 1 , y 1 and B x 2 , y 2 is. That is,. If the general equation of a straight line is given as. Slope Intercept Formula. You are dealing with a straight line equation, if you come across an equation with only x and y. To find the equation of a line and y-intercept in the steepness of the line, we use slope intercept formula.

Slope Intercept Formula is. The values used in formula are as follows:. Rules for Calculating the Slope of Line. Method Step 1: Find two points on the line. Step 2: Count the rise. The number of units counts up or down to get from one point to the next. A slope of zero is a horizontal flat line.

A vertical line has an infinite slope. Suppose a line has a larger intercept. Graphically, that means it would shift out or up from the old origin, parallel to the old line. If a line has a smaller intercept, it would shift in or down , parallel to the old line. Skip to main content. Module: Economic Thinking.

Search for:. Reading: Interpreting Slope. Figure 1. Positive Slope. Figure 2. Negative slope. The slope of a linear function is the same no matter where on the line it is measured. This is not true for non-linear functions.

The demand for a breakfast cereal can be represented by the following equation where p is the price per box in dollars:. Mathematicians and economists often use the Greek capital letter D or D as the symbol for change. Slope shows the change in y or the change on the vertical axis versus the change in x or the change on the horizontal axis. It can be measured as the ratio of any two values of y versus any two values of x.



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