Reading Graphs

1. Reading Graphs By Jonathan Dunlop Ashar Shaik Joyce Lin

2. Terms to know • PPF- (Production Possibilities Frontier) • A graph used to calculate tradeoff and opportunity costs assuming that you have maximum efficiency. • Supply and Demand shifts • Shift- where the curve itself shifts right or left along the X-Axis. • Supply and Demand movements • Movement- change along the curve. • Elasticity • The degree to which a demand or supply curve reacts to a change in price is the curve's elasticity. • Shortages and Surpluses • Shortage is a lack of something desired. • Surplus is an excess of something desired.

3. PPF graph The frontier is the most of what you can produce of things. • A graph used to calculate tradeoff and opportunity costs assuming that you have maximum efficiency. If you produce more refrigerators, you can’t produce as many cars- thus, the shape of the curve indicates that the opportunity cost of producing more of one product is greater at some points along the curve than at others. X- attainable but inefficient Y- unattainable

4. Supply and demand shifts • A shift is where the curve itself shifts right or left along the X-Axis.

5. Supply and Demand movements • A Movement is a change along the supply or demand curve.

6. Elasticity • The degree to which a demand or supply curve reacts to a change in price is the curve's elasticity.

7. Shortages and Surpluses Surplus is when the quantity supplied exceeds the quantity demanded. Shortage is when the quantity demanded exceeds the quantity supplied.

8. Review Game If consumer income increases, what would happen to the demand curve? The demand curve would shift to the right Price D Quantity

9. Review Game What can move the PPF forward? More resources and more technology