A worker views leisure and income as goods and has an opportunity to work at an hourly
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Question:
A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $14 per hour. The worker is always willing to give up $12 of income for each hour of leisure as long as she works less than 8 hours a day, She is always willing to give up $15 if she works less than 10 hours but greater than or equal to 8 hours. She is always willing to give up $18 if she works 10 hours or more.
(1) Draw the indifference map for the consumer.
(2) How may hours will she work per day? Show in a graph that includes both the budget line and indifference map.
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Posted Date: