Economic Models

Try It

Answer to Try It

    • graphically
      Incorrect. While a graph would provide a view of the direction of the relationship, the magnitude of the relationship is difficult to capture visually.
    • mathematically
      Correct. Using math, both the direction of the relationship and its magnitude are more easily determined.
    • by creating a model
      Incorrect. While a graph would provide a view of the direction of the relationship, the magnitude of the relationship is difficult to capture visually.