math review

Name: ____________________________ ECON2301

Math and Graph Review

1. Explain and illustrate a positive relationship between two variable on a table and in a graph. Identify the independent and dependent variables. (Do NOT use supply or demand as an example)

2. Explain and illustrate a negative relationship between two variable on a table and in a graph. Identify the independent and dependent variables. (Do NOT use supply or demand as an example)

3. Explain and illustrate graphically the difference between a “movement along a curve” and a “shift of the curve”. (Do NOT use supply or demand as an example)

4. Gas decreases from $4 per gallon to $2 per gallon. What is the percent change in the price per gallon of gas?

Name: ____________________________ ECON2301

Math and Graph Review

Hamburgers Tacos

0 10

1 8

2 6

3 4

4 2

5 0

5. The table above shows the various combinations of tacos and hamburgers a local food truck may produce in 1 hour. What is the total cost if hamburger production is increased from 2 hamburgers to 4

hamburgers per hour? (i.e. what is the total number of tacos the food truck gives up)

6. The table above shows the various combinations of tacos and hamburgers a local food truck may produce in 1 hour. What is the marginal cost if hamburger production is increased from 2 hamburgers to

4 hamburgers per hour? (i.e. how many tacos does the food truck give up per hamburger gained)

Name: ____________________________ ECON2301

Math and Graph Review

The equation of a Line

Y = b + m(X) represents the slope-intercept equation of a line. Answer all of the questions based on the

equation:

C = $200 + .8 (DI);

where C is daily consumption expenditures and DI is daily disposable income or a household.

1. What is the slope of the line? Interpretation: A ________ Change in DI causes a _______ change in

consumption, in the same direction.

2. When DI = $2000, C is _______

3. When DI = $4,000, C is _______

4. When DI = $0, C is _______

5. The Y-intercept is $200. Interpretation: When DI is equal to _______, Consumption expenditures are equal to

_______.

6. What type of relationship exists between DI and C.

7. Complete the following table based on the equation C = $200 + 0.8(DI)

Combination Disposable Income (DI) Consumption (C) Saving (S)

A $0

B $1000

C $2000

D $3000

E $4000