what is the linear equation of the problem.

Question

When the minimum wage was $1.60 a Big Mac cost 75 cents. When minimum wage rose to $10.20 the price of a Big Mac rose to $3.99.

Answer 1

$1.60 to $10.20 is an $8.60 increase in the minimum wage

$.75 to $3.99 is a $3.24 increase in the Big Mac cost

Divide $3.24 by $8.60 to get $.37. For every dollar increase in the minimum wage, the cost of Big Mac goes up by 37 cents

Let y=cost of Big Mac, x=minimum wage rate m=slope or rise over run, increase in y for 1 unit x increase

m=0.37

y=0.37x+y intercept y-intercept is the cost of Big Mac when minimum wage = 0

Reduce $1.60 to zero and Big Mac cost goes down 1.6 times .37 = $0.592 .75-.592=.158 or about 16 cents

full linear equation is y = .37x+.158

Big Mac Cost = 0.37(minimum wage rate) plus about 16 cents