Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 1 - Limits, Alternatives, and Choices - Appendix - Problems - Page 29: 3

Answer

y=750

Work Step by Step

We find, (y - y1) =$\frac{y_{2}- y_{1}}{x_{2}-x_{1}}$ $(x-x_{1})$ Here, x= Income y=Savings (y-1000) = $\frac{-500-1000}{0-15000}$ (x-15000) y-1000=$ \frac{1}{10}(x-15000)$ x-10y=5000 So, Slope = $(\frac{y2-y1}{x2-x1}) =\frac{1}{10}$ 10 y= x-5000 y=$\frac{x}{10} - 500$ Verticle Intercept = -500 Thus: y= $\frac{12500}{10}-500$ y=750
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