Question: Connect Problem CP 2 3 - 0 8 ( algo ) Layla earns wages of $ 3 0 , 0 0 0 per year. She

Connect Problem CP 23-08(algo)
Layla earns wages of $30,000 per year. She qualifies for about $10,000 in housing credits, which raises her overall income to $40,000. Housing credits are withdrawn for anyone earning more than $35,000 per year.
Instructions: Enter your answers as a whole number.
a. If Layla earns an extra $7,500 per year, by how much will her overall income change?
Her overall income will |by $ .
b. Now suppose instead that housing credits are withdrawn gradually at a rate of $500 for each $1,000 that someone is earning above the wage limit of $35,500 per year. Assuming Layla earns an extra $7,500 per year above her original wage of $30,000 per year, how large will her housing credit be?
$
c. Based on the housing benefit plan decribed in part b, where housing credits are withdrawn gradually, Layla's overall income will be
when she earns an extra $7,500 per year in wages.
lower
the same
higher
Connect Problem CP 2 3 - 0 8 ( algo ) Layla earns

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!