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 find the slope of the line between points A and B, you need to use the formula for finding the slope of a line:
Slope = (change in y-coordinate) / (change in x-coordinate)
In this case, the change in y-coordinate is the difference in consumption (Y) between the two points (8,000 - 5,000 = 3,000). The change in x-coordinate is the difference in disposable income (X) between the two points (20,000 - 10,000 = 10,000).
Now, plug in these values into the formula:
Slope = 3,000 / 10,000
Simplifying this expression, the slope is 0.3. Therefore, the correct answer is A) 0.3.