Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
can you please draw the graph

Transcribed Image Text:1. (Appendix Question) The following table contains data on the relationship between saving and income.
Rearrange these data into a meaningful order and graph them on the accompanying grid. The
variable on X-axis should be (
Label variables on the graph. →
), and the variable on y-axis should be (
).
100
Income
(per year)
Saving
(per year)
so
S-20
50
50
100
20
150
40
-50
50
100
150
The relationship between income and saving is (direct, inverse; positive, negative ). That means, as
income increases, the amount of saving (increases, decreases, stays the same).
What is the slope of the line? Slope =.
The slope shows the amount of changes in savings due to the changes in income. That is, for every $1
increase in income, the amount of increase in saving will be $
The vertical intercept? (= $
when income is C
= Vertical changes + Horizontal changes
_). The intercept shows the amount of saving (dissaving) occurring
Expert Solution

Step 1
Note:Drawing the Graph only, since you asked to draw the graph out of all the questions
The Income -Savings graph can be drawn by plotting the value of Income on the axis where income is taken and by plotting the value of Savings on the axis where it is taken.
After that, join all the (x,y) Points in order to obtain the curve.
Step by step
Solved in 3 steps with 1 images

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