Question: Use the information below about a possible tax credit for a family consisting of two adults and two children (see figure). Earned income: E Subsidy

Use the information below about a possible tax credit for a family consisting of two adults and two children (see figure). Earned income:
E
Subsidy (a grant of money):
S = 10,000 - ½ E, 0 ‰¤ E ‰¤ 20,000
Total income:
T = E + S

(a) Graphically estimate the intercepts of the red line. Then interpret the meaning of each intercept.
(b) Explain how to solve part (a) algebraically.
(c) Graphically estimate the earned income for which the total income is $14,000.
(d) Explain how to solve part (c) algebraically.

18 14 Total income (T) - Subsidy (S) 10 6. + + 6. 4 8. + 10 12 14 16 18 20 Earned income (in thousands of dollars) Thousands of dollars

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