Lainey has 80 hours per week that she can devote to time spent working or on...
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Lainey has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Lainey 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 Lainey's weekly leisure-income tradeoff. The three lines labeled BC1, BC2, and BC3 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. INCOME (Dollars) 1920 1280 640 5 0 BC3 BC2 BC₁ B 25 30 35 LEISURE (Hours) For each listed point, use the preceding graph to complete the following table by indicating the hourly wage as well as the number of hours per week Lainey will spend on labor and leisure. Point A B C WAGE (Dollars per hour) Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Lainey's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. 24 22 20 18 16 14 12 10 6 4 2 Wage Leisure (Dollars per hour) (Hours) 0 + 0 5 10 15 Labor (Hours) 20 25 30 35 40 45 50 55 60 LABOR (Hours) Labor Supply Screenshot (?) Suppose that Lainey's initial budget line was BC₁ and that it then changed to BC2; therefore, Lainey's optimal time allocation choice shifted from A to B. As a result of this change, Lainey's opportunity cost of leisure region, the ▼ , and she chose to consume leisure. Consequently, in this effect dominates the effect. The corresponding portion of Lainey's labor supply curve is Lainey has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Lainey 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 Lainey's weekly leisure-income tradeoff. The three lines labeled BC1, BC2, and BC3 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. INCOME (Dollars) 1920 1280 640 5 0 BC3 BC2 BC₁ B 25 30 35 LEISURE (Hours) For each listed point, use the preceding graph to complete the following table by indicating the hourly wage as well as the number of hours per week Lainey will spend on labor and leisure. Point A B C WAGE (Dollars per hour) Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Lainey's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. 24 22 20 18 16 14 12 10 6 4 2 Wage Leisure (Dollars per hour) (Hours) 0 + 0 5 10 15 Labor (Hours) 20 25 30 35 40 45 50 55 60 LABOR (Hours) Labor Supply Screenshot (?) Suppose that Lainey's initial budget line was BC₁ and that it then changed to BC2; therefore, Lainey's optimal time allocation choice shifted from A to B. As a result of this change, Lainey's opportunity cost of leisure region, the ▼ , and she chose to consume leisure. Consequently, in this effect dominates the effect. The corresponding portion of Lainey's labor supply curve is
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