curve

Examples of curve in the following topics:

• Curve Sketching

  • Curve sketching is used to produce a rough idea of overall shape of a curve given its equation without computing a detailed plot.
  • Determine the symmetry of the curve.
  • If the exponent of $x$ is always even in the equation of the curve, then the $y$-axis is an axis of symmetry for the curve.
  • Determine the asymptotes of the curve.
  • Also determine from which side the curve approaches the asymptotes and where the asymptotes intersect the curve.

• Demand Schedules and Demand Curves

  • A demand curve depicts the price and quantity combinations listed in a demand schedule.
  • The curve can be derived from a demand schedule, which is essentially a table view of the price and quantity pairings that comprise the demand curve.
  • The demand curve of an individual agent can be combined with that of other economic agents to depict a market or aggregate demand curve.
  • In this manner, the demand curve for all consumers together follows from the demand curve of every individual consumer.
  • The demand curve in combination with the supply curve provides the market clearing or equilibrium price and quantity relationship.

• The Relationship Between the Phillips Curve and AD-AD

  • Changes in aggregate demand cause movements along the Phillips curve, all other variables held constant.
  • The Phillips curve shows the inverse trade-off between rates of inflation and rates of unemployment.
  • The Phillips curve and aggregate demand share similar components.
  • Now, imagine there are increases in aggregate demand, causing the curve to shift right to curves AD2 through AD4.
  • These two factors are captured as equivalent movements along the Phillips curve from points A to D.

• The Supply Curve in Perfect Competition

  • In economics, a cost curve is a graph that shows the costs of production as a function of total quantity produced.
  • In a free market economy, firms use cost curves to find the optimal point of production (minimizing cost).
  • The various types of cost curves include total, average, marginal curves.
  • Some of the cost curves analyze the short run, while others focus on the long run.
  • When a table of costs and revenues is available, a firm can plot the data onto a profit curve.

• The Short-Run Phillips Curve

  • The short-run Phillips curve depicts the inverse trade-off between inflation and unemployment.
  • The Phillips curve depicts the relationship between inflation and unemployment rates.
  • During the 1960's, the Phillips curve rose to prominence because it seemed to accurately depict real-world macroeconomics.
  • Given a stationary aggregate supply curve, increases in aggregate demand create increases in real output.
  • The short-run Phillips curve shows that in the short-term there is a tradeoff between inflation and unemployment.

• Market Supply

  • As a result, the supply curve is upward sloping .
  • Market supply is the summation of the individual supply curves within a specific market.
  • The supply curve can be derived by compiling the price-to-quantity relationship of a seller.
  • The market supply curve is simply the sum of every seller's individual supply curve.
  • The market supply curve is an upward sloping curve depicting the positive relationship between price and quantity supplied.

• Optimal Quantity of a Public Good

  • Unlike the market demand curve for private goods, where individual demand curves are summed horizontally, individual demand curves for public goods are summed vertically to get the market demand curve.
  • It is equal to the marginal benefit curve.
  • The supply curve for a public good is equal to its marginal cost curve.
  • The supply curve therefore has an upward slope.
  • As already noted, the demand curve is equal to the marginal benefit curve, while the supply curve is equal to the marginal cost curve.

• Graphing the Normal Distribution

  • The graph of a normal distribution is a bell curve, as shown below.
  • Percentiles represent the area under the normal curve, increasing from left to right.
  • Bell curve visualizing a normal distribution with a relatively large standard deviation.
  • The graph of a normal distribution is known as a bell curve.
  • Bell curve visualizing a normal distribution with a relatively small standard deviation.

• Banked and Unbacked Highway Curves

  • In an "ideally banked curve," the angle $\theta$ is chosen such that one can negotiate the curve at a certain speed without the aid of friction.
  • As an example of a uniform circular motion and its application, let us now consider banked curves, where the slope of the road helps you negotiate the curve.
  • The greater the angle $\theta$, the faster you can take the curve.
  • In an "ideally banked curve," the angle $\theta$ is such that you can negotiate the curve at a certain speed without the aid of friction between the tires and the road.
  • Friction helps, because it allows you to take the curve at greater or lower speed than if the curve is frictionless.

• Shifting the Phillips Curve with a Supply Shock

  • The Phillips curve shows the relationship between inflation and unemployment.
  • In the 1960's, economists believed that the short-run Phillips curve was stable.
  • By the 1970's, economic events dashed the idea of a predictable Phillips curve.
  • Consequently, the Phillips curve could not model this situation.
  • Give examples of aggregate supply shock that shift the Phillips curve