Factors That Affect The Same Direction Essay

1795 Words Sep 13th, 2015 null Page
" o When both variables change in the same direction (as is true here), the relationship between the variables is DIRECT; when they change in opposite directions, the relationship is INVERSE.

o Lines have slopes and vertical intercepts. The slope of a line is calculated by choosing any two points on that line and dividing the change in the vertical distance by the change in the horizontal distance. A line 's slope measures the amount of rise or fall of that line.

 vertical variable y y2 – y1 150-100 slope =  horizontal variable = x x2 x1 = 200-100

A positive slope means the relationship between the two variables is DIRECT; a negative slope means the relationship is INVERSE.
The vertical intercept is the value of the vertical variable where the line intersects the vertical axis (that is, where the value of the horizontal variable equals 0).

o Equation (p. 25) - Any straight line, such as the consumption function above or the line below, can be represented by the general equation y = a + bx, where:

x represents the variable measured in the horizontal direction; Y y represents the variable measured in the vertical direction; 50 a refers the line’s vertical intercept;…

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