High School

The initial budget equation for pop (p) and movies (m) is [tex]Q_p = 20 - 4Q_m[/tex], and the price of a pop is $5. If the price of a pop falls to $4, what is the new budget equation?

A) [tex]Q_p = 25 - 2Q_m[/tex]

B) [tex]Q_p = 25 - 4Q_m[/tex]

C) [tex]Q_p = 25 - 5Q_m[/tex]

D) [tex]Q_p = 20 - 5Q_m[/tex]

E) [tex]Q_p = 25 + 5Q_m[/tex]

Answer :

Final answer:

The new budget equation, when the price of a pop falls to $4, is Qp = 20 - 16Qm.

Explanation:

To find the new budget equation, we need to substitute the new price of a pop, which is $4, into the initial budget equation.

The initial budget equation is Qp = 20 - 4Qm.

Substituting the new price of a pop, we get Qp = 20 - 4Qm = 20 - 4(4)Qm = 20 - 16Qm.

Therefore, the new budget equation is Qp = 20 - 16Qm.

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