Words, Graphs and Equations:

In economic discussions, three types of language are used - verbal, graphic and mathematical.

(a) Verbal Statement: The use of words is oftern the easiest way to presentation. It has the advantage of making discussions in economics available to a wide audience.

(b) Graphs: Bacause of their visual appeal, graphs are used as a further aid to understanding economic discussions. Moreover, graphs provide a clear picture of the reltionship between two economic variables.

(c) Equations: Complex relationships, ecpecially three or more dimensional relations or more are expessed in mathematical language - algebraic statement or functional relatioship. However, for ease of presentation, variables are often reduced to two so that they can be shown on graphs.