Graphs and Lines
Cartesian Coordinate System
Recall that to form a Cartesian or rectangular coordinate system, we select two real number
lines – one horizontal and one vertical – and let them cross through their origins. Up and to the
right are the usual choices for the positive directions. These two number lines are called the
horizontal axis and the vertical axis, or, together, the coordinate axes. The horizontal axis is
usually referred to as the x axis and the vertical axis as the y axis. The coordinate axes divide the
plane into four parts called quadrants, which are numbered counterclockwise from I to IV.
Let P(a,b) be a given point in a plane. Then first coordinate, a, is called the abscissa or x
coordinate of P, and the second coordinate, b, is called the ordinate or y coordinate of P. The
point with coordinates (0,0) is called the origin.
There is a one-to-one correspondence between the points in a plane and the elements in the set
of all ordered pairs of real numbers. This is often referred to as the fundamental theorem of
analytic geometry.
Graphs of Ax + By = C
Definition (Linear Equations in Two Variables). A linear equation in two variables is an
equation that can be written in the standard for
Ax + By = C,
where A, B, and C are constants (A and B not both 0), and x and y are variables.
A solution of an equation in two variables is an ordered pair of real numbers that satisfies the
equation. The solution set of an equation in two variables is the set of all solutions of the
equation. The graph of an equation is the graph of its solution set.
Theorem (Graph of a Linear Equation in Two Variables). The graph of any equation of the
form
Ax + By = C (A and B not both 0) (1)
is a line, and any line in a Cartesian coordinate system is the graph of an equation of this form.
If and , then equation (1) can be written as
If and , then equation (1) can be written as
and its graph is a horizontal line. If and , then equation (1) can be written as
and its graph is a vertical line.
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Slope of a Line
If we take two points, and , on a line, then the ratio of the change in y to the
change in x as the point moves from to is called the slope of the line. In a sense, slope
provides a measure of the “steepness” of a line relative to the x axis. The change in x is often
called the run, and the change in y is the rise.
Definition (Slope of a Line). If a line passes through two distinct points, and
, then its slope is given by the formula
For a horizontal line, y does not change; its slope is 0. For a vertical line, x does not change;
, so its slope is not defined. In general, the slope of a line may be positive, negative, 0, or
not defined.
Equations of Lines: Special Forms
Definition (Slope-Intercept Form). The equation
(m = slope, b = y intercept)
is called the slope-intercept form of an equation of a line.
Definition (Point-Slope Form). An equation of a line with slope m that passes through
is
,
which is called the point-slope form of an equation of a line.
Applications
In a free competitive market, the price of a product is determined by the relationship between
supply and demand. If there is a surplus – that is, the supply is greater than the demand – the
price tends to come down. If there is a shortage – that is, the demand is greater than the supply –
the price tends to go up. The price tends to move toward an equilibrium price at which the supply
and demand are equal.
Example (Supply and Demand). At a price of $ 9.00 per box of oranges, the supply is 320 000
boxes and the demand is 200 000 boxes. At a price of $ 8.50 per box, the supply is 270 000
boxes and the demand is 300 000 boxes.
(A) Find a price-supply equation of the form , where p is the price in dollars and x
is the corresponding supply in thousands of boxes.
(B) Find a price-demand equation of the form , where p is the price in dollars and
x is the corresponding demand in thousands of boxes.
(C) Find the point of intersection of the price-supply and price-demand equations.
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Solution. (A) To find a price-supply equation of the form , we must find two points
of the form that are on the supply line. From the given supply data, (320, 9) and (270, 8.5)
are two such points. First, find the slope of the line:
.
Now use the point-slope form to find the equation of the line:
,
,
(Price-supply equation).
(B) From the given demand data, (200, 9) and (300, 8.5) are two points on the demand line. First,
find the slope of the line:
.
Now use the point-slope form to find the equation of the line:
,
,
(Price-demand equation).
(C) To find the intersection point of the two lines, we equate the right-hand sides of the price-
supply and price-demand equations and solve for x:
,
.
Now use the price-supply equation to find p when :
.
The lines intersect at (280, 8.6). The intersection point of the price-supply and price-demand
equations is called the equilibrium point, and its coordinates are the equilibrium quantity
(280) and the equilibrium price ($ 8.6)
