8.Anne has a iob that requires her to travel three out of every four weeks She has an annual travel budget and can either travel by train or by plane. airline she typically flies with has a frequent traveler program that reduces the cost of her tickets depending on the number of miles she has flown in a given year.When she reaches 25,000 miles the airline will reduce the price of her tickets by 25%for the remainder of the year.When she reached 50,000 miles the airline will reduce the price of her tickets by50%for the remainder of the year.Graph Anne's budget line,with train miles on the vertical axis and plane miles on the horizontal axis. The typical budget line is linear (with a constant slope)because the prices of the two goods do not change as the consumer buys more or less of a particular good.In this case.the price of airline miles will change deperding on how many miles she purchase.As thep changes.the e of the budget line will cha ge Since there are three prices, will be three slopes,or two kinks,to the budget line. Since the price falls as she flies more miles,the budget line will become flatter with every price change.See the graph in the problem below. 9.Debra usually buys a soft drink when sheg goes to a ovi theater,where he has a choice of three sizes the 8 ounce drink costs $1.50,the 12 ounce drink S2.00,and the 16 ounce drink,S2.25.Describe the budget constraint that Debra faces when deciding how many ounces of the drink to purchase.(Assume that Debra can costlessly dispose ofany of the soft drink that she does not want. First notice that as the size of the drink increases,the price per ounce decreases.When she buys the 8-ounce soft drink she pays $1.50 =$0.19 pero=.When she buys the 12-ounce size she pays $0.17 80z per ounce.and when she buys the 16-ounce size.she pays so.14 per ounce Given that there are three different prices per ounce of soft drink,the budget line will have two kinks in it.as illustrated below.Notice that a each kink,the slope of the oudget line getsfatter (due the decreasing cost per ounce relative to the "other good"on the vertical axis).8. Anne has a job that requires her to travel three out of every four weeks. She has an annual travel budget and can either travel by train or by plane. The airline she typically flies with has a frequent traveler program that reduces the cost of her tickets depending on the number of miles she has flown in a given year. When she reaches 25,000 miles the airline will reduce the price of her tickets by 25% for the remainder of the year. When she reached 50,000 miles, the airline will reduce the price of her tickets by 50% for the remainder of the year. Graph Anne’s budget line, with train miles on the vertical axis and plane miles on the horizontal axis. The typical budget line is linear (with a constant slope) because the prices of the two goods do not change as the consumer buys more or less of a particular good. In this case, the price of airline miles will change depending on how many miles she purchases. As the price changes, the slope of the budget line will change. Since there are three prices, there will be three slopes, or two kinks, to the budget line. Since the price falls as she flies more miles, the budget line will become flatter with every price change. See the graph in the problem below. 9. Debra usually buys a soft drink when she goes to a movie theater, where she has a choice of three sizes: the 8 ounce drink costs $1.50, the 12 ounce drink, $2.00, and the 16 ounce drink, $2.25. Describe the budget constraint that Debra faces when deciding how many ounces of the drink to purchase. (Assume that Debra can costlessly dispose of any of the soft drink that she does not want. First notice that as the size of the drink increases, the price per ounce decreases. When she buys the 8-ounce soft drink she pays $1.50 8 oz = $0.19 per oz. When she buys the 12-ounce size she pays $0.17 per ounce, and when she buys the 16-ounce size, she pays $0.14 per ounce. Given that there are three different prices per ounce of soft drink, the budget line will have two kinks in it, as illustrated below. Notice that at each kink, the slope of the budget line gets flatter (due to the decreasing cost per ounce relative to the “other good” on the vertical axis)