Anne is a frequent flyer whose fares are reduced 25% after she flies 25,000 miles a year and then by 50% after she flies 50,000 miles. Assume that the price of 1 mile is $10 and the price of a unit of all other goods is $1.
a. Graph the budget lien that Anne faces in making her flight plans for the year.
b. At what rate can Anne replace one mile with other goods if she flies less than 25,000 miles?
c. At what rate can Anne replace one mile with other goods if she flies more than 25,000 miles but less than 50,000 miles?
d. At what rate can Anne replace one mile with other goods if she flies more than 50,000 miles?