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Suppose John is planning to join a fitness club. Membership in the club will allow John to exercise for half price.Normally the exercise cost is
Suppose John is planning to join a fitness club. Membership in the club will allow John to exercise for half price.Normally the exercise cost is $10.John has an income of $200, the club membership fee is $50 (assume that we plot the number of exercises on the horizontal axis and a "composite good" which has a price of $1 on the vertical axis) Draw a figure that illustrates John's budget line and the indifference curves before and after joining the fitness club.
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