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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
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 five miles.
- Assuming that Professor Smith spends the $100 each month at either Alice's or the club, sketch his budget constraint. Show actual numbers on the axes.
- Last month Professor Smith chose to eat at the club ten times and at Alice's five times. Does this choice fit within his budget constraint? Explain your answer.
- 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.
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