Answer to Question #241013 in Microeconomics for sophia

Question

Suppose the relationship between the​ government's tax revenue​ (T) and national income​ (Y) is represented by the equation T=35+0.5Y. Plot this relationship on a scale​ diagram, with Y on the horizontal axis and T on the vertical axis. Interpret the equation.

Use the line drawing tool to draw the equation. Make sure to plot the vertical axis as one endpoint of the line. Properly label this line.

Carefully follow the instructions​ above, and only draw the required objects.

Can you show me how to graph this, please?

Answer 1

when Y=0, T=10

when Y=50, T=35

Government's tax revenue is positively related to national income. As income increass, tax revenue also increases. When icome is zero tax income is zero and as income increases to 50, ta revenue increases to 35