
ELASTICITY ALTERNATIVES, DEMAND: The price elasticity of demand can fall into one of five categoriesperfectly elastic, relatively elastic, unit elastic, relatively inelastic, and perfectly inelasticbased on the coefficient of elasticity. These five elasticity alternatives form a continuum ranging from perfectly elastic at one end to perfectly inelastic at the other. The "middle" of this continuum is occupied by unit elastic. in that the "unit" and the two "perfectly" are really borders, boundaries, and endpoints, most of the real world action involving the price elasticity of demand takes place in the two "relatively" alternativesrelatively elastic and relatively inelastic.
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GRAPHICAL ANALYSIS: The process of investigating phenomena, especially economic phenomena, in a systematic manner using diagrams and graphs. Graphical analysis is commonly used to display abstract scientific relations, then to manipulate those relations to gain greater understanding of real world events. The market model is a primary example of graphical analysis. Graphs are twodimensional pictures used to represent economic relations between two (or more) variables. Graphical analysis is most interesting and useful when it combines two or more relations into a single diagram. The interaction among these relations is then analyzed for insight into the workings of the economic world. A Primer On Graphs  Consider three common types of graphs: Pie Chart: A graph commonly used to present the division of a total among parts is a pie chart. Click the [Pie Chart] button to illustrate. This particular pie chart represents the division of national income among different factor paymentswages, interest, rent, and profit. The pie is the total and each slice represents the portion distributed to each category. Pie charts are a handy way to present information, but are not well suited for more involved economic analysis.
 Bar Chart: A graph used to present data for discrete categories is a bar chart. Click the [Bar Chart] button to illustrate. This bar chart indicates the unemployment rate for each of five demographic groupstotal population, males, females, whites, and nonwhites. A bar chart provides a useful way to compare information about different groups or categories.
 Line Graph: A graph that tends to be most useful in the construction of graphical models and in doing economic analysis is a line graph. Click the [Line Graph] button to illustrate. This particular line graph shows the relation between two variablesprice and quantity. Such line graphs are ideally suited for illustrating scientific principles and hypotheses. They can be used to show how one variable (quantity) is affected by changes in another variable (price).
Two RelationsTwo alternative relations are commonly illustrated with line graphs. Positive or Direct: One type of line graph illustrated by clicking the [Positive Relation] button represents a positive or direct relation between two variables, such as price and quantity. With this line, a higher price is related to a larger quantity. Another way of stating this is that the slope of the line is positive. A common positive relation in economics is the market supply curve.
 Negative or Indirect: A second type of line, one that represents a negative or indirect relation between two variables, such as price and quantity, can be seen by clicking the [Negative Relation] button. With this line, a lower price is related to a larger quantity. Another way of stating this is that the slope of the line is negative. A common negative relation in economics is the market demand curve.
Recommended Citation:GRAPHICAL ANALYSIS, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 20002018. [Accessed: March 19, 2018]. Check Out These Related Terms...       Or For A Little Background...          And For Further Study...             
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Today, you are likely to spend a great deal of time looking for a downtown retail store hoping to buy either an extra large beach blanket or a large flower pot shaped like a Greek urn. Be on the lookout for letters from the Internal Revenue Service. Your Complete Scope
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Parker Brothers, the folks who produce the Monopoly board game, prints more Monopoly money each year than real currency printed by the U.S. government.


"Whatever course you decide upon, there is always someone to tell you that you are wrong. There are always difficulties arising which tempt you to believe that your critics are right. To map out a course of action and follow it to an end requires...courage."  Ralph Waldo Emerson


CUUS Comsumer Union of the United States


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