A Little Math
© Allen C Goodman, 2005
Graphing
• Let’s return to the Production Possibility
Curve that we saw before
• How did we get it?
Figure 2 The Production Possibilities Frontier
Quantity of
Computers
Produced
Computers
3000
2500
2200
2000
1000
0
3,000 A
B
2,500
Cars
0
300
600
700
850
1000
C
2,200
2,000
D
E
1,000
Production
possibilities
frontier
F
0
300
600 700 850 1,000
Quantity of
Cars
Produced
Copyright©2003 Southwestern/Thomson Learning
Figure 2 The Production Possibilities Frontier
Quantity of
Computers
Produced
If you are at point C, what is the cost of another 100 cars?
To get +100 cars, you must take -200 computers!
Change in Computers 200 y


 slope
Change in Cars
100 x
3,000 A
B
2,500
Slope = “rise”/”run”
-200
2,200
2,000
C
D
+100
E
1,000
Production
possibilities
frontier
F
0
300
600 700 850 1,000
Quantity of
Cars
Produced
Copyright©2003 Southwestern/Thomson Learning
Figure 2 The Production Possibilities Frontier
Quantity of
Computers
Produced
If you are at point C, what is the cost of another 100 cars?
To get +100 cars, you must take -200 computers!
Change in Computers 200 y


 slope
Change in Cars
100 x
3,000 A
Cost/car = -2 computers/car !
B
2,500
-200
2,200
2,000
C
D
+100
E
1,000
Production
possibilities
frontier
F
0
300
600 700 850 1,000
Quantity of
Cars
Produced
Copyright©2003 Southwestern/Thomson Learning
Another Example w/ Excel
Hours
x
Score
y
Exam Success
Slope
45
40
1
8
3
17
5
26
Score
35
30
25
20
15
10
8
36
9
38
10
35
Let’s use an excel program, slope.xls
5
0
0
1
2
3
4
5
6
7
Hours Studied
8
9
10 11
Key Points
• We will be graphing relationships. You
should get comfortable with it.
• Whatever aides you need (EXCEL,
graphing calculators, etc.) are fine with
me, if they can help you to do the work.