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:

Question

Bria Mccoy · Accepted Answer

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