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Seb likes both sailing and rugby. Seb decided that he will spend at maximum $360 per week of his income on sport activities. Sailing costs
Seb likes both sailing and rugby. Seb decided that he will spend at maximum $360 per week of his income on sport activities. Sailing costs Seb $120 per session and Rugby costs him $60 per session. Questions: If Seb spent all of her available budget on Sailing, how many sessions per week could he afford? [2 points] If Seb spent all of his available budget on Rugby, how many sessions per week could he afford? [2 points] If Seb spent half of his available budget on Sailing and the other half on Rugby, how many Sailing and Rugby sessions could he afford per week? [2 points] Now graph the budget constraint that Seb faces, with Sailing on the vertical axis and Rugby on the horizontal axis. Label the points of (1.), (2.) and (3.) with the letters a, b, and c respectively. [4 points] What is the slope of the budget constraint? [2 points] Seb gets a pay cut by 50%. He now decides to spend 50% less of his weekly allowance on either Sailing or Rugby. Draw Seb's new budget constraint. Indicate clearly which bundles of Sailing and Rugby are now available to Seb. [3 points]
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