Teenagers under age 18 in New York State are prohibited from working more than 8 hours a

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Teenagers under age 18 in New York State are prohibited from working more than 8 hours a day, except if they work as golf caddies, babysitters, or farmworkers.

Consider a 16-year-old whose primary household work in the summer is studying for college entrance exams and practicing a musical instrument but who also has two options for paid work. She can work for $6 per hour with a catering service

(limited to 8 hours per day) or work for $5 per hour as a babysitter (with no limitations on hours worked).

a. First, draw the daily budget constraints for each of her paid-work options

(assume she can work either for the catering service or as a babysitter but cannot do both).

b. Next, analyze the possible labor supply decisions this 16-year-old can make, making special reference to the effects of the state law restricting most paid work to 8 hours a day.

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