Sarah is awake for 100 hours per week. Using one diagram, show Sarahs budget constraints if she

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Sarah is awake for 100 hours per week. Using one diagram, show Sarah’s budget constraints if she earns $6 per hour, $8 per hour, and $10 per hour. Now draw indifference curves such that Sarah’s labor-supply curve is upward sloping when the wage is between $6 and $8 per hour, and backward sloping when the wage is between $8 and $10 per hour.


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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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