Nonlinear Relationships

Objectives
This unit is split up into three section, first this introduction, and then two more sections. After reviewing this unit, you will be able to:

• Identify the Point of Tangency on a curve.
• Determine whether a line is a tangent line.
• Calculate the slope at a point on a curve.
• Determine whether the slope at a point on a curve is positive, negative, zero, or infinity.
• Identify maximum and minimum points on a curve
• Determine whether a curve does or does not have maximum and minimum points.

Introduction
Most relationships in economics are, unfortunately, not linear. Each unit change in the x variable will not always bring about the same change in the y variable. The graph of this relationship will be a curve instead of a straight line.

This graph below shows a linear relationship between x and y.	This graph below shows a nonlinear relationship between x and y.

In the remainder of this unit you will learn how to determine the slope of a nonlinear relationship and about maximum and minimum points on a curve. To continue on, press the next section button below.