9. The following graph represents the cost of two cell phone plans. Explain, in detail, the circumstances under which one plan is better value for the customer than the other plan.

1 answer

The graph shows two cell phone plans with the cost per month on the y-axis and the number of months on the x-axis. Plan A has a constant cost of $60 per month, while Plan B starts at a lower cost of $40 per month but increases by $10 per month after six months.

To determine which plan is a better value for the customer, we need to consider the total cost of each plan over a certain period. If the customer plans to use the cell phone for only a few months, Plan B may be a better option as the cost starts lower. However, if the customer plans to use the cell phone for a longer period, the cost of Plan B will eventually exceed the cost of Plan A.

For example, if the customer plans to use the cell phone for six months, the total cost of Plan A would be $360 ($60 per month x 6 months), while the total cost of Plan B would be $280 ($40 per month x 6 months + $50 per month x 3 months). In this case, Plan B is a better option as it has a lower total cost for the given time period.

However, if the customer plans to use the cell phone for 12 months, the total cost of Plan A would still be $720 ($60 per month x 12 months), while the total cost of Plan B would be $460 ($40 per month x 6 months + $50 per month x 6 months). In this case, Plan A is a better option as it has a lower total cost for the given time period.

Therefore, the circumstances under which one plan is a better value for the customer than the other plan depend on the length of time the cell phone is being used. If the usage is for a shorter period, Plan B may be a better option. However, if the usage is for a longer period, Plan A is a better option as it has a constant cost per month, while Plan B increases after six months.