Y= consumption X= Disposable income
Y X
5,000 10,000 A
8,000 20,000 B
Refer to info above. The slope of the line between points A and B is:
A) .3
B) 2.3
C) 3.3
D) indeterminate from this information.
How do you figure this out. What is the math to calculate this? Can any one help?
To calculate the slope of the line between points A and B, we need to use the formula for slope:
Slope = (change in Y) / (change in X)
Let's start by calculating the change in Y. The Y-values of points A and B are 5,000 and 8,000, respectively. Therefore, the change in Y is 8,000 - 5,000 = 3,000.
Similarly, we can calculate the change in X. The X-values of points A and B are 10,000 and 20,000, respectively. So, the change in X is 20,000 - 10,000 = 10,000.
Now, we can plug the values into the slope formula:
Slope = (change in Y) / (change in X)
= 3,000 / 10,000
= 0.3
Therefore, the slope of the line between points A and B is 0.3.
Hence, the answer is option A) 0.3.