James has a $100 monthly exercise budget, which he spends at Tarheel Gym on yoga classes...

James has a $100 monthly exercise budget, which he spends at Tarheel Gym on yoga classes (Y) and spin classes (S). The price of yoga class is $10, and the price of a spin class is $5. Draw his budget constraint for each of the following scenarios. Use a separate graph for each part and label all axes, intercepts and the coordinates of any kink points. Treat each case separately and graph yoga classes on the x-axis and spin classes on the y-axis.

a. The price of a yoga class drops to $8 after 5 classes, and again to $5 after 10 classes.

b. After every 4 yoga classes you buy, you get the next one for half off.

c. After purchasing 5 yoga classes, you must become a “Tarheel Yogi.” Becoming a Tarheel Yogi costs $20, but it also reduces the price of each subsequent yoga class to $5.

d. For every 5 yoga classes you buy, you get $5 in gym credit that can be used on any class at Tarheel Gym.

Expert Solution

Rahul Sunny answered 2 years ago

Jeff has a monthly income of $400, which he spends each month on dinners (which cost...

Jeff has a monthly income of $400, which he spends each month on dinners (which cost $20 each) and movies. He finds that he maximizes his utility by spending half his income on dinners and ha lf on movies. His marginal rate of substitution at this bundle of goods is 0.4 (measured with dinners on the horizontal axis). a. Given this information, what is the price of movies? b. Draw Jeff's budget constraint and indifference curve at this optimal bundle....

A local gym has found that each member, on average, spends 73 minutes at the gym...

A local gym has found that each member, on average, spends 73 minutes at the gym per week, with a standard deviation of 11 minutes. Assume the amount of time that members spend at the gym has a normal distribution. a. What is the probability that a randomly selected customer spends less than 85 minutes at the gym? b. Suppose the gym surveys a random sample of 25 members about the amount of time they spend at the gym each...

1. Homer Simpson gets a monthly salary of $90, which he spends on donuts and other...

1. Homer Simpson gets a monthly salary of $90, which he spends on donuts and other goods. The donut store charges a price of $3 per donut. Homer always consumes donuts with other goods – 2 units of other goods with 1 donut. Show the indifference map of Homer and determine his best affordable bundle. Briefly explain your method. (5 points) The donut store changes its pricing policy. For the first 10 donuts, the price is still $3, but it...

Your Econ 201 professor has a daily budget of $40, and he spends it entirely on...

Your Econ 201 professor has a daily budget of $40, and he spends it entirely on coffee and comic books. The table shows the marginal utility he receives from consuming different quantities of coffee and comic books. Each comic book is priced at $8, and each cup of coffee is priced at $4. To maximize his total utility, how many cups of coffee should he buy, and how many comic books should he buy? How many utils of total utility...

Joseph Moore recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes...

Joseph Moore recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $10 per person. To differentiate his gym and better serve his clients, Joseph provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.83 per person. Joseph employs four part-time instructors and pays them each $1,800 per month. He also pays himself a monthly salary of $6,300. Joseph’s other monthly...

A firm has a capital budget of $100 which must be spent on one of two...

A firm has a capital budget of $100 which must be spent on one of two projects, which any unspent balance being placed in a bank deposit earning 15%. Project A involves a present outlay of $100 yields $321.76 after 5 years. Project B involves a present outlay of $40 yields $92 after one year. Calculate: i. the IRR of each project ii. the B/C ratio of each project, using a 15% discount rate What are the project rankings on...

SA 1.(5 marks) Bob supports his family with monthly income of $500. Currently, he spends $200...

SA 1. Bob supports his family with monthly income of $500. Currently, he spends $200 on food and the remaining $300 on composite goods. Under the new income assistance program to be implemented next year, Bob will become eligible to receive food vouchers. Those vouchers provide Bob with $300 worth of free food every month. However, they cannot be sold or exchanged for other goods. True or False: Assuming that food is an inferior good for Bob, he will be...

JAMES Taxpayer has AGI of $100,000 in 2018 for the following He has doctor costs of...

JAMES Taxpayer has AGI of $100,000 in 2018 for the following He has doctor costs of $10,000, hearing aid of $1,000, bayer aspirin of $500, braces of $3,000, and eyeglasses of $1000. What is is deductible medical? He has state withholding of $10,000, property taxes of $5,000, DMV of $500. What is his deductible state taxes? He purchased a home in 2018, and paid mortgage interest of $30,000. The loan on the home is $1,000,000. He also has credit card debt interest...

Claude is buying a house. He expects his budget to allow a monthly payment of $1250...

Claude is buying a house. He expects his budget to allow a monthly payment of $1250 on a 25-year mortgage with an interest rate of (6.8%,2). If Claude makes a 10 percent down payment, determine the most he can pay for the house.

he controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the...

he controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budgetinformation: September October November Sales $109,000 $137,000 $184,000 Manufacturing costs 46,000 59,000 66,000 Selling and administrative expenses 38,000 41,000 70,000 Capital expenditures _ _ 44,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the...

Question