Check out example codes for "label points in plot in r". It will help you in understanding the concepts better.

Code Example 1

# Example of labeling points
attach(mtcars)
plot(wt, mpg, main="Milage vs. Car Weight",
   xlab="Weight", ylab="Mileage", pch=18, col="blue")
text(wt, mpg, row.names(mtcars), cex=0.6, pos=4, col="red")

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