Monday, June 30, 2008

Dependent and Independent Variables


Economics graphs just about everything. They graph the total utility, then they graph the slope of the total utility. A student in my enriched economics class last year said, "If I had only one day left to live, I would live it in my econ class: it would seem so much longer."

Math students often get frustrated in econ because economists reverse the independent and dependent variables. Economists put the independent variable on the y-axis. So an economist might plot price on the y-axis and quantity on the x-axis. An economist might ask, "What happens to quantity when the price changes?" A mathematician would have reversed the price and quantity.

A neighborly economist went over to meet his new neighbor. The economist found his new neighbor painting his house. After they exchanged introductions, the mathematician said, "You must be a mathematician?"

"Why that's right. How did you know?"

"You've got your ladder backward," said the economist.

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