Use a graph to find a number such that if Z x 2 4 Z , then | tan x 2 1| , 0.2

Chapter 1: Principles of Economics What is economics Economics is the study of how society manages its scarce resources. How do we use graphs in economics We graphs to illustrate the relationship between variables. The following illustrates the negative relationship between price and quantity. As the price decreases the quantity increases – this is a negative relationship because the quantity slope is negative. Economics • Scarcity of resources (income, time, natural resources) ◦ Unlimited wants and desires ◦ Choices • Social Science of individuals choice behaviour, given you have scarce resources. Three Economic Ideas (Assumptions that we make) 1. People are rational – they use information to make a rational choice. 2. People r