Latoya Graham earns a monthly income of $15,500. However, she enjoys swimming and playing netball and...

 

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Latoya Graham earns a monthly income of $15,500. However, she enjoys swimming and playing netball and she plan to spend $3,500 of her income on both. Information from the market states that to use the pool per day cost $500 and to use the netball court cost $250 per day. a. Draw Latoya Graham's budget line. Putting netball on the X-axis. (10 marks) b. What is the opportunity cost of Latoya swimming 3 ½ days per month if swimming increase to $1,000 per day and netball increase to $500 per day? Show the budget line and workings marks) (10 c. Suppose she increase her spending to $5,000 per month, show Latoya new budget line given the initial costs. (5 marks) d. Suppose the cost of playing netball falls to $200 per day, what is the impact of this on Latoya old budget line? (5 marks) e. Suppose the cost of swimming rises to $700 per day, what is the impact of this on Latoya old budget line? (5 marks) f. Analyse by showing indifference curves on how Latoya Graham can maximize her satisfaction given a budget constraint of $1,500. marks) (10 Latoya Graham earns a monthly income of $15,500. However, she enjoys swimming and playing netball and she plan to spend $3,500 of her income on both. Information from the market states that to use the pool per day cost $500 and to use the netball court cost $250 per day. a. Draw Latoya Graham's budget line. Putting netball on the X-axis. (10 marks) b. What is the opportunity cost of Latoya swimming 3 ½ days per month if swimming increase to $1,000 per day and netball increase to $500 per day? Show the budget line and workings marks) (10 c. Suppose she increase her spending to $5,000 per month, show Latoya new budget line given the initial costs. (5 marks) d. Suppose the cost of playing netball falls to $200 per day, what is the impact of this on Latoya old budget line? (5 marks) e. Suppose the cost of swimming rises to $700 per day, what is the impact of this on Latoya old budget line? (5 marks) f. Analyse by showing indifference curves on how Latoya Graham can maximize her satisfaction given a budget constraint of $1,500. marks) (10

Answer rating: 100% (QA)

Explanation for step 1 Answer aMonthly Income 15500Income allocated for these activities 3500Netball cost 250day Pool Cost 500day Let x be the number ... View the full answer