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Question

Drivejoy charges a per day rental fee comprising two components a daily mileage allowance plus a certain amount per mile driven over the allowance. The given graph compares the miles driven over the allowance and the total cost for a 3-day rental. What does C-intercept represent ?

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A
The per day rental fee for renting the car
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B
The number of miles a renter may drive the car per day
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C
The penalty a renter must pay if the daily mileage allowance is exceeded
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D
The total cost of a 3-day rental assuming the car is not driven over the allowance
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Solution

The correct option is D The total cost of a 3-day rental assuming the car is not driven over the allowance
With miles driven over the allowance plotted along the horizontal axis and the total cost for a 3day rental plotted along the vertical axis (the C-axis), the point (0,63) indicates that driving 0 miles over the allowance (or not driving over the allowance) results in a cost of $63.
Cintercept represent the total cost of 3day rental assuming the car is not driven over the allowance.

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