A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $16 per hour.

a. The worker's opportunity set in a given 24-hour period is illustrated below.What are the values of A and B?

A =

B =

b. Suppose the worker is always willing to give up $18 dollars of income for each hour of leisure. Do her preferences exhibit a diminishing marginal rate of substitution?

(Click to select)

Yes

No

How many hours per day will she choose to work?

a. The worker's opportunity set in a given 24-hour period is illustrated below. What are the values of A and B Income Leisure