armlanna1sK

2022-12-05

Tyrone is a utility maximizer. His income is $100, which he can spend on cafeteria meals and on notepads. Each meal costs$5, and each notepad costs $2. At these prices Tyrone chooses to buy 16 cafeteria meals and 10 notepads. The price of notepads falls to$1; the price of cafeteria meals remains the same. What are the new values for the vertical intercept, horizontal intercept, and slope?
Vertical Intercept:
Horizontal intercept:
Slope:

Bria Mccoy

Expert

Vertical axis intercept = (Income / price of notepads)
Horizontal axis intercept = (Income / price of meals)
Price of notepads $1 Price of meals$5
Income is $100 Vertical intercept = (Income / Price of notepads) V =$100 / $1 = 100 Horizontal intercept = (Income / Price of meals) H =$100 / \$ 5 = 20
Slope = -Price of meals / Price of notepads
S = -5 / 1 = -5

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