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The linear function is popular in economics. It is attractive because it is simple and easy to handle mathematically. It has many important applications.
Linear functions are those whose graph is a straight line.
A linear function has the following form
y = f(x) = a + bx
A linear function has one independent variable and one dependent variable. The independent variable is x and the dependent variable is y.
a is the constant term or the y intercept. It is the value of the dependent variable when x = 0.
b is the coefficient of the independent variable. It is also known as the slope and gives the rate of change of the dependent variable.