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

Question 6

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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

Correct Answer:

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