-The Table Above Shows How the Number of Books Katie

question 108

Essay

$$\begin{array} { c c } \begin{array} { c } \text { Katie's Income } \\\text { (dollars per year) }\end{array} & \begin{array} { c } \text { Katie's purchases } \\\text { (books per year) }\end{array} \\\hline 50,000 & 14 \\70,000 & 16 \\90,000 & 18 \\110,000 & 20 \\\hline\end{array}$$
-The table above shows how the number of books Katie buys each year depends on her income
a.What kind of relationship exists between Katie's income and the number of books she purchases?

b.Plot the relationship between Katie's income and the number of books she purchases in the above figure.Measure income along the vertical axis and the number of books along the horizontal axis.Be sure to label the axes.
c.What is the slope of the relationship between $50,000 and $70,000 of income?
d.What is the slope of the relationship between $90,000 and $110,000 of income?
e.Comment on the similarity or dissimilarity of your answers to parts (c)and (d).

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Definitions:

Market Price

The present cost at which a product or service may be purchased or sold, dictated by market demand and supply.

Optimal Short-Run Output

The level of production that maximizes a firm's short-term profits, given its existing constraints.

Market Price

The ongoing price level for an asset or service that can be traded or acquired in a market setting.

Profit-Maximizing Output

The quantity of goods or services that yields the highest profit for a firm, determined by analyzing costs and revenues.