ECO 3401- Midterm Exam Guide - Comprehensive Notes for the exam ( 19 pages long!)
Document Summary
Chapter 1. 1: slopes and equations of lines: ordered pairs- corresponding pairs of numbers, first number denotes the x value, second number denotes the y, ordered pairs are graphed on the number lines of a cartesian coordinate. Slope of a line: slope represe(cid:374)ts a li(cid:374)e"s steep(cid:374)ess, determined by the difference between the change in y and the change in x of 2 ordered pairs, y2 y1 x2 x1. Graph of a line: every equation in slope-intercept form has a straight line as its graph, scatterplot- non-linear graph of points that can be approximated by a linear equation. Leads to falling prices: when quantity demanded surpasses quantity supplied, shortage occurs. Cost analysis: fixed cost- does not change with changes in price or production, marginal cost- rate of change of cost. Equal to slope of the cost function: ^cost of producing one more, marginal cost is constant.
