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.

Answer rating: 100% (QA)

To address this problem well start by understanding the workers preferences between leisure and income Then well draw the indifference map and the bud... View the full answer