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What Do You Understand by ‘Parametric Shift of a Line’? How Does a Line Shift When Its (I) Slope Decreases, and (Ii) Its Intercept Increases? - Economics

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प्रश्न

What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?

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उत्तर

Considering the equation of a straight line as

b = ma + ε

Where m = slope of straight line, m > 0

ε = intercept on vertical axis, ε> 0

Also, when a increases by 1 unit, the value of b increases by m units.

The parameters εand m are parameters of a graph.

As the value of m increases, the straight line rotates upward around the same vertical intercept. This movement is an example of parametric shift of the graph.

(i) A straight line rotates downward around the same vertical intercept as its slope decreases.

(ii) A straight line shifts parallelly upward when its intercept increases.

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Determination of Equilibrium Income in the Short Run - Effect of an Autonomous Change in Aggregate Demand on Income and Output
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 4: Determination of Income And Employment - Exercises [पृष्ठ ६५]

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एनसीईआरटी Economics - Introductory Macroeconomics [English] Class 12
अध्याय 4 Determination of Income And Employment
Exercises | Q 3 | पृष्ठ ६५
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