Question
Lisa likes to spend her spare time in one of two ways: making trips to Lancaster (x) to visit her grandparents or watching movies (y).
Lisa likes to spend her spare time in one of two ways: making trips to Lancaster (x) to visit her grandparents or watching movies (y). In choosing how to entertain herself, she has to take account of two constraints: money and time.
In a month she has 96 hours of spare time. A trip to Lancaster takes 12 hours, while each visit to the movies takes 3 hours. Each month, she also has $240 to spend on entertainment. On a trip to Lancaster, she spends $20, and on each visit to the movies she spends $10.
(a) Draw her budget constraint for time and her budget constraint for money. Shade in her budget set with vertical lines.
(b) Since her grandparents like to see her often, they tell her they will give her $10 each time she visits Lancaster, for the first four trips in the month.
Draw her new budget constraint for money, and shade in her new budget set with horizontal lines.
Note: label the graph clearly
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