Sean likes to purchase airline tickets between Las Vegas and Chicago and "other goods" out of his income of $10,000. A roundtrip ticket between the two cities costs $500. Fortunately, the airline company has a frequent flyer program whereby any customer making more than 10 trips per year gets to make any additional trip at $200 per roundtrip.

1. On a graph with roundtrips on the horizontal axis and "other goods" on the vertical axis, draw Sean's budget line.
2. Draw a set of indifference curves that illustrate why Sean might be better off with the frequent flyer program. Explain your diagram.
3. Draw a second set of indifference curves (you can use a different graph if it gets too cluttered) that illustrates why Sean might not be better off with the frequent flyer program. Explain your diagram.