Question

Solving Inequalities Unit Portfolio Algebra 1 A

Task 1: You want to start a summer business to earn money. What will you do? You have to consider how much money you can afford.
Task 2: In Task 1, you determined how much of your own money you’re willing to spend to get your business started. This is your limit - when making your product, you can't exceed this amount.
Task 3: Your parents heard about the success of your business and they want to help you out. Suppose they want to give you an additional $300 to put toward your business. However, there’s a catch. If you make more than $600 total, you have to give them 10% of your earnings above $600.

Answer 1

The question involves setting up a business within a budget constraint and understanding how additional funds from parents affect earnings and obligations. Examples of a single mother's choices and expenditures on burgers and bus tickets demonstrate how to apply budget constraints to allocate limited resources.

Step-by-step explanation:

The student's question pertains to the creation of a summer business within a set budget constraint, factoring in an additional $300 contribution from their parents and the condition of paying 10% of earnings over $600 back to the parents.

To illustrate how budget constraints work, the situation of a single mother earning $8 an hour is presented. With 2,500 hours of maximum work availability, she could earn up to $20,000 annually, but she chooses to work 2,000 hours, maximizing her utility and earning $16,000.

With assistance from the parents, a student can calculate the impact on their earnings and the additional money that needs to be paid back if earnings exceed $600, using budget constraints similar to the single mother's situation. Additionally, budget constraints are applied to a scenario involving purchasing burgers and bus tickets, where the costs are $2 per burger and $0.50 per bus ticket, showing how to allocate limited resources across different needs and wants.