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Stubborn Steve likes to eat lunch at noon. He also likes to save money so he can buy other goods and services. He does thi by
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Answer #1

(a) R must be the greatest of all three, as this is his daily budget. Lunch price, L should be the highest price for lunch, i.e. at Noon, at all other times it will be L-t. Hence R>L>t

(b) If lunch taken at noon, he pays L. Hence, he is left with R-L

(c) If two hours after noon, he has R- (L-2) left i.e. (R-L) + 2

(d) One hour before noon: R- (L-1) = (R-L) + 1

(e) A V- shaped graph, with the minimum point at time: Noon an money = R-L
c > ho Le

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