Suppose Maria would spend $1500 per year on travel, even if her annual income were zero. As her income rises, she would spend 30% of each additional dollar of income on travel. a. Write a mathematical equation that describes the functional relation between Maria travel spending (T) and her income (Y). b. Draw a graph from the equation developed in part a above.
Suppose Maria would spend $1500 per year on travel, even if her annual income were zero. As her income rises, she would spend 30% of each additional dollar of income on travel. a. Write a mathematical equation that describes the functional relation between Maria travel spending (T) and her income (Y). b. Draw a graph from the equation developed in part a above.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 2SQP
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