Question: Please draw a diagram when answering. ( Based on Chapter 2 , Problem 1 of Benjamin et al . , 2 0 3 1 )
Please draw a diagram when answering.
Based on Chapter Problem of Benjamin et al Amit has $ of annual nonlabour income. He has hours per week that he can allocate between labour and leisure, for hours per year. His current wage rate is $ per hour and he chooses to work hours a year.
a Draw a leisurelabour diagram, clearly indicating Amit's current labour supply decision. Your diagram should be clearly labeled and include Amit's budget line and an indifferent curve showing his leisure and consumption of goods and services at his optimal choice. Use the figures provided to find the yintercept and his consumption if he doesn't work.
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