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?

- GoldRush18

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- anonymous

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

- GoldRush18

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

- anonymous

it could be 7000 > 5x + 7y

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- anonymous

because she can't go over but can be under

- GoldRush18

oh i get it

- GoldRush18

bcuz the 7000 is her budget

- GoldRush18

so wat about part b and c

- anonymous

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

- anonymous

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

- anonymous

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

- anonymous

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

- GoldRush18

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

- GoldRush18

ok i got y=1000 and x=1400

- anonymous

so those are the intercepts, What is the equation?

- GoldRush18

|dw:1351254063633:dw|

- GoldRush18

is it that?

- anonymous

7000 = 5x + 7y
7000 - 5x = 7y
1000 - (5/7)x = y
The graph looks correct.

- anonymous

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

- anonymous

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

- anonymous

|dw:1351258124097:dw|

- anonymous

So what do you think the answers are for c

- GoldRush18

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

- anonymous

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?

- GoldRush18

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

- anonymous

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

- GoldRush18

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

- anonymous

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

- GoldRush18

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

- anonymous

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

- anonymous

increase of decrease

- anonymous

or**

- GoldRush18

oh the x intercept decreases

- anonymous

right. Good job and good luck

- GoldRush18

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

- anonymous

What are your other questions?

- GoldRush18

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

- anonymous

wow that assignment is awful

- GoldRush18

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

- GoldRush18

taught*

- anonymous

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.

- anonymous

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

- GoldRush18

ok

- GoldRush18

thanks anyway

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