1.2 On January 1, Professor Smith made a resolution to lose some weight and save some money. He decided that he would strictly budget $100 for lunches each month. For lunch, he has only two choices: the faculty club, where the price of a lunch is $5, and Alice’s Restaurant, where the price of a lunch is $10. Every day that he does not eat lunch, he runs 5 miles.

a. Assuming that the club, sketch his budget constraint. Show actual numbers on the axes.

b. Last month Professor Smith chose to eat at the club 10 times and at Alice’s 5 times. Does this choice fit within his budget constraint? Explain your answer.

c. Last month Alice ran a half-price lunch special all month.

All lunches were reduced to $5. Show the effect on Professor Smith’s budget constraint.