Question: d. Suppose a preference shock occurs, lowering B from B, to B d. Suppose a preference shock occurs, lowering B from B, to < B,

d. Suppose a preference shock occurs, lowering B from B, to B

d. Suppose a preference shock occurs, lowering B from B, to < B, . The level of pr oductivity is still as in part c (that is , A ). On your diagram, clearly (qualitatively) sketch an indifference map , a budget constraint, and associated optimal choices of consumption and leisure. Briefly explain any differences between your sketch here and those in part b and part c as as any key eccnomic interpretation of you result.

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