TOOLS FOR ECONOMIC ANALYSIS
CONTENT
- Simple Linear Equation
- Measures of Dispersion
- Pie Chart
- Histogram
- Frequency Polygon/Distribution
Simple Linear Equation
Basic tools for Economic analysis are the tools required to reduce the wordiness of economic theories and principles and help to present them in clearer concise forms. Some of these tools are
- Simple linear equation
- Simultaneous equation
- Measures of Dispersion, etc
1. Simple Linear Equation
In this, functional relationship between two variables can be illustrated symbolically. For example, let’s say the demand for more plates of rice depends on the availability of meat.
This can be illustrated symbolically as:
Qr = f(m) Where:
Qr = Demand for Rice
m = Meat
Also, if the demand for Indomie Noodles depends on its price. This can also be illustrated thus:
Qi=f(Pi)
Also, it is generally known in economic parlance that the consumption of an individual depends on his level of income; that is, consumption is a function of income.
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Toyyib Ibrahim
Halima Ahmadu
Maryam