Question

Sandra uses two mobile cell phones( a digicel and a lime phone), to make her monthly calls. Sandra budget only $7000 on telephone calls per month and the cost per minute for digicel and lime are $5.00 and $7.00 respectively.

a. Write down the algebraic equation for Sandra's budget constraint.
b. Graph then Sandra's budget constraint. ( the budget constraint intercepts should be shown clearly on the graph)
c. How will an increase in the cost per minute for digicel call affect the budget line's y_intercept, x-intercept and the slope?

Answer 1

a) 7000 = 5x + 7y , where x is digicel and y is lime

Answer 2

i had that for a and i thought mine was wrong, now im understanding :)

Answer 3

it could be 7000 > 5x + 7y

Answer 4

because she can't go over but can be under

Answer 5

oh i get it

Answer 6

bcuz the 7000 is her budget

Answer 7

so wat about part b and c

Answer 8

part b is asking for a budget constraint line and part be also said equation for budget restraint. I would put 7000 = 7x + 5y as the answer for part a because that is the restraint line. Something that she can't go over

Answer 9

part b is kinda difficult. You should solve for y so the equation is in y = mx + b form then you can graph it. label your axis according to what cell phone. So if we solve for y, the y axis will be the lime phone

Answer 10

part c I would just pick an increased amount for the cost per minute. graph that as well, and you should easily be able to see the differences from there

Answer 11

let me know what you got solving for y or x and I'll check you. You should be fine from there

Answer 12

oh im not good at graphs thats why i need the help

Answer 13

ok i got y=1000 and x=1400

Answer 14

so those are the intercepts, What is the equation?

Answer 15

is it that?

Answer 16

7000 = 5x + 7y
7000 - 5x = 7y
1000 - (5/7)x = y

The graph looks correct.

Answer 17

lets change the cost of digicel to 10 for easy math sake

Answer 18

7000 = 10x + 7y
(0,1000) (700,0)

Answer 19

So what do you think the answers are for c

Answer 20

i think that as the cost per minute for digicel increase then the budget line will become steeper, is it?

Answer 21

Because the x and y can easily be switched between the diff cell phones make sure you are stating your assumption of what x and y are along the way. You shouldn't be wrong because it doesn't say what each should be.

That is correct. Technically it gets more negative. laymen's term steeper. What about the intercepts?

Answer 22

ok thanks i knw what u mean but im not sure how to explain it in terms of intercepts.

Answer 23

Look at the lime intercept of the 2 graphs. Do they change? same for the digicel, do they change

Answer 24

ok the y axis which is lime does not change but the x axis which is digicel changes when price increase, im trying to answer

Answer 25

correct for lime, it stays the same. How does the digicel change

Answer 26

the digicel changes because there was an increase in the cost.

Answer 27

correct but in what way does it change? That is how you need to answer this question

Answer 28

increase of decrease

Answer 29

or**

Answer 30

oh the x intercept decreases

Answer 31

right. Good job and good luck

Answer 32

omg thank u so much, im understanding so much better now

Answer 33

What are your other questions?

Answer 34

do u have an email address, its in a word document

Answer 35

wow that assignment is awful

Answer 36

i know right, and its like we have to research it because they haven't though us as yet

Answer 37

taught*

Answer 38

is this due on monday? If this my my assignment I'd be all over google. Even copy and past questions in. Sometimes you get lucky.

Answer 39

I took econ 3 years ago. I can't remember the other questions sry.

Answer 40

ok

Answer 41

thanks anyway