Question

1. Kevin 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. (

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

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

   3. 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.

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

      Tarheel Gym.

Answer 1