Mary works on a part-time job with a monthly income $300. She spends money only in fitness centre and other goods represented as composite good with a price of 1$/unit. The fitness centre membership costs her $50 per month, and she can work out in the centre up to 20 visite per month for free. Each additional visit beyond 20 will cost her $5/visit. (Hints; assume that x is the fitnese centre visite, and y is a composite good $1/unit.] a) Write down and simplify Mary's budget constraint function(s). b) Draw Mary's budget line with clear labels,
Mary works on a part-time job with a monthly income $300. She spends money only in fitness centre and other goods represented as composite good with a price of 1$/unit. The fitness centre membership costs her $50 per month, and she can work out in the centre up to 20 visite per month for free. Each additional visit beyond 20 will cost her $5/visit. (Hints; assume that x is the fitnese centre visite, and y is a composite good $1/unit.] a) Write down and simplify Mary's budget constraint function(s). b) Draw Mary's budget line with clear labels,
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q3. Mary works on a part-time job with a monthly income $300. She spends money only in
fitness centre and other goods represented as composite good with a price of 1$/unit. The
fitness centre membership costs her $50 per month, and she can work out in the centre up to
20 visite per month for free. Each additional visit beyond 20 will cost her $5/visit. (Hints;
assume that x is the fitnese centre visite, and y is a composite good $1/unit.]
a) Write down and simplify Mary's budget constraint function(s).
b) Draw Mary's budget line with clear labels,
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