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Economics FROM 3

Chapter 2: BASIC TOOLS OF ECONOMIC ANALYSIS (ELEMENTARY STATISTICS FOR ECONOMIC ANALYSIS)

E. GRAPHS
  1.  

A graph is a pictorial representation of a data or table o show relationship between two or more variables or events.

The Procedure of Drawing a Graph

  1. Draw the x and y axes.
  2. Choose suitable scales for the x and y axes by considering the minimum and maximum values of figures given.
  3. Graduate the x and y axes such that the intervals are the same.
  4. Plot corresponding points as given in the data.
  5. Connect the plotted points with a smooth line to obtain a curve.

Example: From the following demand and supply schedules, draw a graph to show the quantities curve.

Price of the commodity

Quantity demanded per week

Quantity supplied per week

2

1000

200

4

800

400

6

600

600

8

400

800

10

200

1000

Solution

PERCENTAGE (%)

It means out of a hundred. It expresses a number out of a hundred. It is obtained as follows:

Percentage=NumberTotal number*100

Example: Mrs. Natasha pays 20000frs out of 100000frs she is owing. What is the percentage payed?

Solution

Perncentage payed=20000100000*100=20%

Ans=20%

PERCENTAGE CHANGE (%)

This is change in a figure expressed as percentage of the original figure.

Example: Mrs. Jenifer is payed 100000frs per month. The salary is increased to 125000frs. Calculate the percentage change income.

Solution

Percentage change=125000-100000100000*100%=25000100000*100%=25%

Percentage change=25%

Converting Percentages

  • To convert percentage to decimal number, divide the number by 100 or move the decimal point two numbers to the left. Example 5% = 5/100 = 0.05
  • To convert a decimal number to a percentage, multiply the number by 100. Example 0.4*100 = 40%
  • To convert a percentage to a simple fraction, divide the percentage by 100. Eg 25%=25100=14
  • To convert a fraction to a percentage, multiply the fraction by 100. Example 14*100=25%
  • To convert an amount from percentage, use the following;
  • Amount = Rate-Principal
  • Amount = Percentage*Total amount

Example: Mrs. Fon who earns 100000frs pays an income tax of 5%. How much does she actually pays as taxes?

Solution

Amount paid as income tax = 5100*100000FCFA=5000FCFA

par Claude Foumtum