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You wake up on the planet Flatz after being abducted for economic research. The Flatzies give you following resources to survive - 10,000 Flats. Flats

You wake up on the planet Flatz after being abducted for economic research. The Flatzies give you following resources to survive - 10,000 Flats. Flats are universally accepted on Flatz for acquiring goods and services. The saddening thing with Flats is that 25% of your Flats vanish at sunrise.

a) Construct graphs of your consumption opportunity set (decision line/budget constraint) for Day 1 to Day 2, and Day 2 to Day 3.

b) If you are offered a return ticket to Earth on Day 3 at a cost of 2500 Flats, what is the maximum amount of Flats you can spend on Day 1 to leave you with enough Flats to purchase the ticket to return home on Day 3?

Show your calculations and construct the graphs showing your consumption allowing you to return home.

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