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LEARNING OBJECTIVES
- Understand how graphs show the relationship between two or more variables and explain how a graph elucidates the nature of the relationship.
- Define the slope of a curve.
- Distinguish between a movement along a curve, a shift in a curve, and a rotation in a curve.
Much of the analysis in economics deals with relationships between variables. A variable is simply a quantity whose value can change. A graph is a pictorial representation of the relationship between two or more variables. The key to understanding graphs is knowing the rules that apply to their construction and interpretation. This section defines those rules and explains how to draw a graph.
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