Question: Alani has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Alani is paid by the

Alani has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Alani is paid by the hour, and that her job will always allow her to work as many hours as she chooses. The following graph presents Alani's weekly leisure-income tradeoff. The three lines labeled BC1 , BC;, and 8C3 show her time allocation budget at three different hourly wage levels. The given points A, B, and C represent her optimal time allocation choices along each of these constraints. BC 3 1600 BC 2 960 INCOME (Dollars) BC 480 0 0 30 35 40 LEISURE (Hours)Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Alani's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. /_\\ [\\31' 24 22 20 Labor Supply 18 16 14 12 10 WAGE (Dollars per hour) 0 51015202530354045505560 LABOR(Hours) Suppose that Alani's initial budget line was BC2 and that it then changed to BC3; therefore, Alani's optimal time allocation choice shifted from B to C. As a result of this change, Alani's opportunity cost of leisure Y , and she chose to consume V leisure. Consequently, in this region, the Y effect dominates the V effect. The corresponding portion of Alani's labor supply curve is V

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