The Purpose of This Exercise Is to Acquaint You with Some

question 117

Essay

The purpose of this exercise is to acquaint you with some simple mathematical relationships and how they translate into graphs.Economic models can come under the form of equations such as Y=F(L),where Y is sometimes called the "dependent variable" and L is the "independent variable." F,called "function," tells us what the precise relationship between Y and L is.Theoretical relationships (models) are those that can be described by an equation like this.When equations are sufficiently simple,they can be put under the form of a curve in a graph.Consider the equation Y=2×L,where Y is the number of apple pies that Jonathan can cook in L hours.This equation describes the process of producing apple pies.
a.How many pies does Jonathan cook in 2,3,4,and 5 hours
b.Draw a vertical axis and label it Y; draw a horizontal axis and label it L.Show on this graph the four pairs (L,Y) you determined in part
c.Draw a line connecting your four points and extend it to the left until it reaches the vertical axis.
d.Identify a few assumptions that underlie your apple pie production model.
e.Are your assumptions realistic
f.Can you identify a few limitations of your model
g.What could you use this model for?

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Definitions:

Social Institution

A complex, integrated set of norms and structures that dictate how individuals in a society interact and organize around fundamental needs and purposes, like family, education, and religion.

Cohabiting Couples

Partners who live together in a sexual and domestic relationship without being legally married.

Cohabitation Rates

The proportion of individuals living together in a non-marital partnership, often considered an indicator of changing social norms regarding relationships and family life.

Alberta

A province in western Canada, known for its natural beauty, oil and gas industry, and as a center for various cultural and economic activities.