Suppose Ahmoud would spend $1200 per year on travel,even if his annual income were zero.As his income rises,he would spend 20% of each additional dollar of income on travel.Choose the correct mathematical equation that describes the functional relation between his travel spending (T)and his income (Y).
A)Y = 1200 + 0.2T
B)Y = 1200 - 0.2T
C)T = 0.2 + 1200Y
D)T = 1200 + 0.8Y
E)T = 1200 + 0.2Y

Question

Quizplus · Accepted Answer

Since Ahmoud spends $1200 per year on travel even if his annual income were zero, this represents his fixed cost or the y-intercept of the equation. The equation should also incorporate the fact that he spends 20% of each additional dollar on travel as his income increases. This means that his incremental spending on travel is a function of his income or (0.20 * (Y - 1200)). Therefore, the equation can be written as:
T = 1200 + 0.2(Y - 1200)
Simplifying the equation gives T = 1200 + 0.2Y - 240, which is equivalent to T = 0.2Y + 960. This matches the format of Choice E, which is the correct answer.

Suppose Ahmoud Would Spend $1200 Per Year on Travel,even If