A consumer budgets $480 per month for transportation. She has determined that the cost of a round-trip train ride is $4 and the cost of each round-trip car ride (factoring in gas, oil, etc.) is $3.
a. Write a budget line equation for this situation.
b. Construct the budget line graph that models this situation.
c. What do the points on the budget line represent?
d. What do points below the budget line represent?
e. Suppose that the budgeted amount increases to $516. Construct the new budget line and the old budget line on the same axes.
f. What does the region in between the two lines represent?