The variable shown on the vertical axis is The units for the variable on the horizontal axis are There are two ways to view the information presented on the graph. First, the graph tells us the amount a person with a certain income is likely to spend on a home, and second, it tells us the probable income of a person who spent a certain amount on a home. For example, $50,000 last year and purchased a new home, you would expect that person to have paid about if an individual earned for the home. Similarly, if someone just paid $250,000 for a home, you could use this graph to estimate that this person's income was probably around
The variable shown on the vertical axis is The units for the variable on the horizontal axis are There are two ways to view the information presented on the graph. First, the graph tells us the amount a person with a certain income is likely to spend on a home, and second, it tells us the probable income of a person who spent a certain amount on a home. For example, $50,000 last year and purchased a new home, you would expect that person to have paid about if an individual earned for the home. Similarly, if someone just paid $250,000 for a home, you could use this graph to estimate that this person's income was probably around
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:PRICE (Thousands of dollars perhome).
500
450
400
350
300
250
200
150
100
50
0
0
10
+ +
+
+
30 40
50 60 70
80
INCOME (Thousands of dollars per year)
+
20
The variable shown on the vertical axis is
The units for the variable on the horizontal axis are
+
90 100
?
There are two ways to view the information presented on the graph. First, the graph tells us the amount a person with a certain income is likely to
spend on a home, and second, it tells us the probable income of a person who spent a certain amount on a home. For example, if an individual earned
$50,000 last year and purchased a new home, you would expect that person to have paid about
for the home. Similarly, if someone
just paid $250,000 for a home, you could use this graph to estimate that this person's income was probably around
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