The local fitness club charges non-members $10 per visit. If you become a member, you can work out for $5 per visit, but you have to pay an annual fee of F. For simplicity assume the price of all other goods is $1. Your annual income is $30,000. 7. What are the two "goods" in this problem? 8. Suppose that at an annual fee of $1000 you choose not become a member and you choose to visit the club 100 times a year. Illustrate this situation in an indifference curve-budget line diagram. (Note: make sure you draw the budget line when you are not a member, the budget line when you are a member, and the optimal point if a you choose not to become a member. How does your diagram show that 100 visits is optimal? 9. Suppose now that at an annual fee of $500 you choose to become a member. Draw your budget line and your optimal choice in the same diagram you used to answer question 8. Would you go more or fewer times than if you do not become a member? 10. Illustrate in your diagram to find (graphically, not numerically) the highest membership fee that you would pay. You may, if you wish, draw a new diagram to answer this