Hey, guys. I know a lot of you haven't seen graphs for a while, so I'm including this review to refresh you on a lot of those concepts. And if you feel a little more comfortable with the math, I still suggest watching it. You might get some value out of it. The first thing we've got here is our 2 variable graph on the left.

Okay. We're going to learn what the key parts of the graph are and how to plot points on the graph in this video. So first, we're going to label what are called the axes of the graph. So here on the bottom, what I've just highlighted in red, this is called the x axis for our x values, and on the other axis going up, we have the y axis. Cool? Generally, we're going to have numbers or values that tell us how much each jump in the graph is, and for now, we're just going to go 1, 2, 3, 4, 5, 6, 7. Right? And usually, when I give you graphs in this class, you're going to not have to do this. Right? I'll have done it already. I just figured the first time we do it together just so you get a feel for it.

So here on the right, I have what's labeled the demand schedule, and it's got some prices and some quantities. Right? So at certain prices, there's going to be certain quantities that are demanded, and later in the course, we're going to dive into these topics more. But for now, what I want to do is get these points onto the graph. Right? So the first thing we have to do is we're going to label one of our axes as the price and one of our axes as the quantity. In economics, we tend to label the y axis as price and the x axis as quantity. This is how they've been doing it. This is just the convention in economics that's been around for a long time. So this is how we will do it as well. Price on the vertical axis and quantity on the horizontal axis.

So let's go ahead and get these pairs, what we call pairs of numbers, and we're going to plot them on the graph. So let's start with the first one, which I'll call let's label them all a, b, c, d, e just so we know which one we're talking about when we're on the graph. So let's start with 6,1, a price of 6 and one demanded. So I'm going to go to my price axis and find 6 right up here, and I'm going to start going out. Right? And then when I go to the quantity axis, I'm going to find 1 and I'm going to go up from there, and I'm going to find the point where these two cross with each other. Right? So right here, that's going to end up being the point 6 for price and one for quantity right there. I'm going to erase some of those extra. Cool? So that's going to be point A right there.

Let's go ahead. I'm not going to change colors because I'm not going to have 5 different colors for this right now. I don't think we'll need it, but let's go ahead and plot the rest of these. So, actually for this one I'll use blue and then I'll rotate back to red just, just to keep it a little consistent. So here we have a price of 5 and a quantity of 2. So we'll find 5 on our price axis, 2 on our quantity axis, and we'll find the place where they mix or where they meet, and that's going to be right there, point B."

Let's go back to red and we'll do the same thing for C. So now we've got a price of 4 and a quantity of 3. Right? And that'll be point C right there. And now point D, I'm going to do in blue. And that's got a price of 3 and a quantity of 4. So you can see these are kind of the places where you could get mixed up. Which way, you know, which axis do I put the 3? Which one do I put the 4? So you just have to make sure that you're on the right axis when you start counting. So that'll be point D right there, and let's finish it up with E at a price of 2 and a quantity of 5. Right there. That's point E right there. Cool? So that's how we plot stuff onto the graph. I guess I'll put this as a blue b and a blue d just to match what we've got going there. Cool. Alright. Let’s move on to the next example.