An outdoor exercise group charges $8 per exercise session that you attend. However, they are now thinking of setting a one-off annual membership fee. If you pay this fee, then attending classes will only cost $2 (to cover public liability). a) Use an indifference curve diagram to show this situation assuming that your original bundle is still affordable with the new payment scheme. b) If you paid $F joining fee, would you go more often or less often than if you did not pay the joining fee. Explain your answer. NB: You can assume the price of AoG is $1. Number of Exercise Sessions Indifference Curve Diagram for Exercise Sessions 120 100 80 60 40 20 - Without Membership ($8/session) With Membership (2/session, 40 fee) -=~ Indifference Curve (U=400) =-= Indifference Curve (U=800) === |ndifference Curve (U=1200) 400 600 800 1000