Ronald is an Economics students who likes to spend his leisure time of sixty hours a month doing one of two activities: watching movies at Dendy Cinemas Newtown (x), and indoor-climbing (y). A trip to the movies takes 3 hours, and each visit to the climbing gym lasts 5 hours. Further, suppose that Ronald has a fixed monthly monetary budget to spend on leisure activities. He currently exhausts this entire budget by watching two movies and visiting the climbing gym fifteen times. With this monthly budget, he would also have been able to afford exactly seven movies and six visits to the climbing gym. Assume that both goods are perfectly divisible.

(a) Write down Ronalds money and time constraints as algebraic inequalities.

(b) Show, using algebra, that Ronalds two budget lines intersect at the bundle (x, y) = (5.5, 8.7).

(c) Plot Ronalds money constraint using a red dotted line. Plot Ronalds time constraint using a blue dotted line. Clearly label each constraint, any axis intercepts, and any points of intersection between the two constraints. Shade in Ronalds budget set, using solid black lines to indicate where the boundaries of the budget set are.

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