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.

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Expert Solution

Rahul Sunny answered 1 year ago

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