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Suppose Ahmoud would spend $1200 per year on travel, even if his annual income were zero. As his ...

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Suppose Ahmoud would spend $1200 per year on travel, even if his annual income were zero. As his ...

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).

▸ T = 1200 + 0.2Y

▸ Y = 1200 - 0.2T

▸ T = 1200 + 0.8Y

▸ T = 0.2 + 1200Y

▸ Y = 1200 + 0.2T

Textbook

Microeconomics

Edition: 17^th

Author: Ragan

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