Chat with AI
Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn
Edition 18ISBN: 9780073365954Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn
Edition 18ISBN: 9780073365954 Exercise 1
Briefl y 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 you would expect to fi nd 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 an entertainer and the price of her concert tickets.
In each case cite and explain how variables other than those specifi cally mentioned might upset the expected relationship. Is your graph in previous part b consistent with the fact that, historically, enrollments and tuition have both increased If not, explain any difference.
In each case cite and explain how variables other than those specifi cally mentioned might upset the expected relationship. Is your graph in previous part b consistent with the fact that, historically, enrollments and tuition have both increased If not, explain any difference.
Explanation
Verified
Verified
Microeconomics is that branch of economics that studies and analyses the choices made by individuals which could be buyers or sellers, households, individual industries, etc. Macroeconomics is that branch of economics that studies the factors which affect the economy as a whole like unemployment, inflation, GDP, etc.
Graphs are normally used in study of economics to show the relationship between two variables which are mostly dependent. Inverse relationship between two variables is when it is seen that when one variable is increasing then other is decreasing. This relationship in graph is shown by downward sloping curve.
Direct relationship between two variables is when it is seen that when one variable is increasing then other is also increasing. This relationship in graph is shown by upward sloping curve.
(a)
Show the relationship between number of inches of rainfall and number of umbrellas sold, as follows:
This relationship could be changed if umbrella is no more preferred by customers as they may prefer raincoats more.
(b)
Show the relationship between amount of tuition fees and level of student enrollment in university, as follows:
If parents realize that college education is very necessary and government would help them by giving scholarships and grants then increase in tuition fee will not make any difference. Here, the relationship is opposite to what is given and as tuition fee is increasing the enrollment is decreasing which is because of law of demand.
(c)
Show the relationship between popularity of an entertainer and price of her concert tickets, as follows:
If the price tickets are having highly elastic demand, then even when popularity of entertainer is rising, still price of concert tickets will not increase.
Graphs are normally used in study of economics to show the relationship between two variables which are mostly dependent. Inverse relationship between two variables is when it is seen that when one variable is increasing then other is decreasing. This relationship in graph is shown by downward sloping curve.
Direct relationship between two variables is when it is seen that when one variable is increasing then other is also increasing. This relationship in graph is shown by upward sloping curve.
(a)
Show the relationship between number of inches of rainfall and number of umbrellas sold, as follows:
This relationship could be changed if umbrella is no more preferred by customers as they may prefer raincoats more. (b)
Show the relationship between amount of tuition fees and level of student enrollment in university, as follows:
If parents realize that college education is very necessary and government would help them by giving scholarships and grants then increase in tuition fee will not make any difference. Here, the relationship is opposite to what is given and as tuition fee is increasing the enrollment is decreasing which is because of law of demand.(c)
Show the relationship between popularity of an entertainer and price of her concert tickets, as follows:
If the price tickets are having highly elastic demand, then even when popularity of entertainer is rising, still price of concert tickets will not increase.
Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
