(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
Lastly, Tyrone's income falls to 90 dollars. What are the new values for the x- and y-intercepts?
(Description)
The graph from the previous slide is shown.
The text to the left of the graph from the previous slide is shown as well.
(Speaker)
Assume the price of notepads remains 1 dollar and cafeteria meals are 5 dollars.
A decrease in Tyrone's income will cause both intercepts to decrease, as Tyrone has less income to purchase notepads and cafeteria meals.
(Description)
Income is changed to 90 dollars on the text to the left of the graph.
The solid straight line passing through a point with coordinates, 0 and 100, and a point with coordinates, 20 and 0, becomes dashed line.
Another straight line passing through a point with coordinates, 0 and 90, and a point with coordinates, 18 and 0, is drawn. These two line have the same slope but different horizontal and vertical intercepts.
(Speaker)
With an income of 90 dollars, Tyrone can only purchase 90 notepads.
(Description)
The point with coordinates, 0 and 90, is briefly labeled as Intercept equals 90 dollars divided by 1 dollar.
(Speaker)
The horizontal intercept will also decrease. Since the price of cafeteria meals remains 5 dollars, the horizontal intercept will be 90 dollars divided by 5 dollars, or 18 meals.
(Description)
The point with coordinates, 18 and 0, is briefly labeled as Intercept equals 90 dollars divided by 5 dollars.
(Speaker)
The slope of the budget constraint remains unchanged as the relative price of meals in terms of notepads has not changed. The slope is negative 90 divided by 18, or negative 5.
(Description)
The third line connecting new vertical and horizontal intercepts is labeled as Slope equals -90 divided by 18 equals -5.