For the math students and economics students ...

[03Eclipse]

I'm taking advance economics as a night course to get an extra degree and need help with a problem ... 1. Consider the following three specific functional forms for a functional relation between X and Y: Y= 50 + 2X Y= 50 + 2X + 0.05X(2) Y= 50 + 2X - 0.05X(2) a) for the values of X of 0, 10, 20, 30, 40, 50 plot x and y on a scale diagram for each specific functional form b) for each form state the the slope is consistant, increasing or decreasing as X increases c) describe for each form how the marginal chnage in Y depends on the value of X Anyone who knows this stuff I would appreciate the help .... Thanks

To remove this ad, register today for free or log in if already registered!

[CdnSilverStreak]

The equation follows a rough form of y = mx + b, where the slope is "m" and the y-intercept is "b".... in your case, the formula is y = b + mx

The slope stays constant in the first formula, rising 2 y units for every x unit, the slops of the second formula increases with every x unit, while the third formula follows a bell curve, rising at a decreasing rate, then falling again...

I'm not too sure about c... but as the slope rises in the second equation, so does the marginal value.... in the final formula, the marginal change is decreasing until x=20, where the y value begins to drop....

[sp3cialk]

a. just graph

b. eq1 increases as x increases
eq2 increases as x increases
eq3 decreases as x increases

c. *brain fart*

[NaSh123]

for the third one i think u basically just say for every 1 unit on the X axis, y moves blank units

[jer2k]

I assumed that the (2) means that it is x squared

For A) just plot it on paper

for B) the first eqation is simply a line with a positive slope of 2. Y is always increasing for every value of X.
The second equation is a parabola (bell curve) and has a derivative of y=X+2. Therefore, when X is >-2 the slope increasing and when X<-2 the slope is decreasing.
For the 3rd equation (parabola upside down) the derivative is y=-x+2. Therefore, when x>2, slope is increasing and when x<2, slope is decreasing.

For c)???