language of graph

GRAPH ANALYSIS

ECONOMICSE = EconomyC = ConsumerO = OrganizingN = NeutralO = ObjectivityM = Measurement I = InvestigationC = CapabilityS = Scarce

DEFINITION OF “ECONOMICS”

“The science which studies Human Behavior as a relationship between Ends

and Scarce means which have Alternative Uses”

(Lionel Robbins)Modern Economic Theory

K.K DewettPg:08

GRAPH ANALYSIS

“It is a Diagram showing how Two Variables are related to one another.

Graphs are the Language of Economics”The language of Graphs are lines and

curves.

(Paul Samuelson)Economics

Pg:18

WHO GAVE THE CONCEPT OF

GRAPHS ? IBN KHALDUN was a Muslim

Historiographer who is often viewed as one of the Fathers of Modern Historiography, Sociology and

Economics.He is best known for his Muqaddimah (known as Prolegomenon in English)

Wikipedia

FROM WHAT HE GAVE CONCEPT OF GRAPHS

IN ECONOMICS?

IBN KHALDUN draw concept of Graphs from Sand Watch and

gave philosophy in Economics.

WHAT IS A LINE?Lines are Fixed and not

Flexible. We cannot make lines always as per Data.

PRICE LINE

This Vertical Line is called PRICE LINE in Economics.

It represent Price or any kind of Financial Value

RISE & FALL IN PRICE LINE

Arrow going Upwards show Rise in price.Arrow going Downwards show Falls in

Price

QUANTITY LINE

This Horizontal Line in Economics is Called “Quantity Line”. It represent Quantity and

any kind of Volume.

RISE & FALL IN QUANTITY

Arrow going right side shows Rise in Quantity .

Arrow going Left side show Falls in Quantity.

DEMAND LINEDemand Line Shows the change in

Demand and its effects on Quantity and Price.

DOWNWARD CHANGE IN

“DEMAND LINE”

When there is Downward Change in Demand line Quantity

Increases and Price Decreases.

UPWARD CHANGE IN “DEMAND LINE”When there is Upward Change in Demand Line Quantity Reduce and Price Increase.

SUPPLY LINESupply Line shows the Change in

Supply and its Effects on Price

DOWNWARD CHANGE IN “SUPPLY LINE”

When there is Downward Change Supply increases and Price

decreases.

UPWARD CHANGE IN “SUPPLY LINE”

When there is Upward Change Supply decreases and Price increases.

CURVESCurves are also Language of Graphs. Curves are made on Angles. Curves give us more Flexibility to Present Data.

UPWARD CHANGE IN “DEMAND

CURVE”In Upward Change Quantity

Increases and Price Decreases.

DOWNWARD CHANGE IN “DEMAND CURVE”

In Downward Change Quantity Increases and Price Decreases.

UPWARD CHANGE IN “SUPPLY CURVE”

When there is Upward Change Supply Decrease and Price

Increase

DOWNWARD CHANGE IN “SUPPLY CURVE”

When there is Downward Change Supply Increase Price Decrease.

SURPLUS & SHORTAGE

EQUILIBRIUMA situation in which the supply of an item is exactly equal to its demand. Since there is

neither surplus nor shortage in the market, price tends to remain stable in this situation.

DEMAND SHIFT

SUPPLY SHIFT

DEMAND & SUPPLY SCHEDULE

Thank you