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A similar definition applies to space curves and curves in n-dimensional Euclidean space. The point where the tangent line and the curve meet or intersect is called the point of tangency. The tangent line is said to be "going in the same direction" as the curve, and is thus the best straight-line approximation to the curve at that point.
In economics, an indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. That is, any combinations of two products indicated by the curve will provide the consumer with equal levels of utility, and the consumer has no preference for one combination or bundle ...
In economics, an expansion path (also called a scale line [1]) is a path connecting optimal input combinations as the scale of production expands. [2] It is often represented as a curve in a graph with quantities of two inputs, typically physical capital and labor , plotted on the axes.
If instead, a new budget line is found with the slope determined by the new prices but tangent to the indifference curve going through the old bundle, the difference between the new point of tangency and the old bundle is the Hicks substitution effect. The idea now is that the consumer is given just enough income to achieve his old utility at ...
In the case of two goods and two individuals, the contract curve can be found as follows. Here refers to the final amount of good 2 allocated to person 1, etc., and refer to the final levels of utility experienced by person 1 and person 2 respectively, refers to the level of utility that person 2 would receive from the initial allocation without trading at all, and and refer to the fixed total ...
When the tangent of the straight line or curve is steeper, the price elasticity (demand or supply) is smaller; when the tangent of the straight line or curve is flatter, the price elasticity (demand or supply) is higher. [7] Elasticity is a unitless ratio, independent of the type of quantities being varied.
Basis of trigonometry: if two right triangles have equal acute angles, they are similar, so their corresponding side lengths are proportional.. In mathematics, the trigonometric functions (also called circular functions, angle functions or goniometric functions) [1] are real functions which relate an angle of a right-angled triangle to ratios of two side lengths.
In economics, the Lorenz curve is a ... However, the previous formula can still apply by generalizing the definition of x(F): () ... then the tangent of L(F) ...