1. (8 pts) Maria is a college student that can earn $10 per hour working at...

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1. (8 pts) Maria is a college student that can earn $10 per hour working at Jimmy Johns. Maria has 80 hours of free time each month that she can split between working and leisure. The graph below shows her indifference curve. a. Draw her budget constraint budget constraint and label it BC. b. Show the combination of Leisure (L) and Consumption (C) that will maximize her satisfaction. C. Consumption How many hours will Maria work and what will be her total pay? $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 0 10 20 30 13 40 I 12 50 60 70 Hours of Leisure Suppose Maria's parents want to help her out with some extra spending money. Maria's mom wants to give her $200 per month in extra spending money. Maria's dad want to match whatever she earns working at Jimmy Johns. For example, if she earns $100 from Jimmy John's he will give her an extra $100. If she earns $50 from Jimmy Johns he will give Maria an extra $50. d. Draw Maria's budget constraint and optimal Consumption/Leisure points under her mom's plan (BCM, LM, CM) and her dad's plans (BCD, LD, CD) 8 1. (8 pts) Maria is a college student that can earn $10 per hour working at Jimmy Johns. Maria has 80 hours of free time each month that she can split between working and leisure. The graph below shows her indifference curve. a. Draw her budget constraint budget constraint and label it BC. b. Show the combination of Leisure (L) and Consumption (C) that will maximize her satisfaction. C. Consumption How many hours will Maria work and what will be her total pay? $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 0 10 20 30 13 40 I 12 50 60 70 Hours of Leisure Suppose Maria's parents want to help her out with some extra spending money. Maria's mom wants to give her $200 per month in extra spending money. Maria's dad want to match whatever she earns working at Jimmy Johns. For example, if she earns $100 from Jimmy John's he will give her an extra $100. If she earns $50 from Jimmy Johns he will give Maria an extra $50. d. Draw Maria's budget constraint and optimal Consumption/Leisure points under her mom's plan (BCM, LM, CM) and her dad's plans (BCD, LD, CD) 8

Answer rating: 100% (QA)

a To draw Marias budget constraint BC we need to consider her total available hours 80 and the wage ... View the full answer