In 4-5 sentences Describe a scenario in which it would be cheaper to have a Blockbuster membership, and then describe a scenario where a Hollywood Video membership would be the more affordable option.

Question

Before streaming became popular, families had to visit video rental stores like Blockbuster and Hollywood Video to rent movies. The graph compares the costs at both locations: Blockbuster charges a $3 monthly membership fee and $0.75 for each movie rented, while Hollywood Video charges a $5 monthly membership fee but only $0.50 per movie rented.

Here is the graph

Y (cost) 1 to 10
X (number of movies rented) 1 to 10

Here is some extra info just in case

Block buster
Point A (3, 0)
Point B (6, 4)
Point C (9, 8)

Hollywood video
Point A (5, 0)
Point B (6, 4)
Point C (6, 8)

Answer 1

In a scenario where a family rents a high number of movies during the month, say 10 rentals, a Blockbuster membership would be cheaper. The total cost for Blockbuster would be $3 (monthly fee) + $0.75 × 10 (rentals) = $3 + $7.50 = $10.50. In comparison, Hollywood Video would cost $5 (membership fee) + $0.50 × 10 (rentals) = $5 + $5 = $10, making it marginally higher for 10 rentals.

Conversely, if a person only rents a few movies, such as 4, it would be more affordable to go with a Hollywood Video membership. The total cost for Hollywood Video would then be $5 + $0.50 × 4 = $5 + $2 = $7. For Blockbuster, the same scenario would cost $3 + $0.75 × 4 = $3 + $3 = $6. However, once we increase the number of rentals to 5, Blockbuster becomes the more economical choice. Thus, for 4 rentals, Hollywood Video is cheaper, while for 5 or more, Blockbuster starts to offer a better deal.