Question
Suppose Jillian will spend $250 on books per year, even if her income is zero. As her income rises, she will spend 8% of each
Suppose Jillian will spend $250 on books per year, even if her income is zero. As her income rises, she will spend 8% of each additional dollar of income on books. Choose the correct mathematical equation that describes the functional relation between her spending on books (B) and her income (Y).
A). Y = 250 + 0.8B
B). B = 250 + 0.8Y
C). Y = 250 - 0.8B
D). B = 0.8 + 250Y
E). B = 250 + 0.8Y
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
