Question 1)

Question 11 Suppose a consumer can work the first 1:: hours (out of a total of h hours) at a wage of w1, and hours worked beyond x above earn an overtime wage w; > w1. Assume that the consumer's non-labour income (net of taxes) is given, and her preferences can be represented by strictly convex indifference curves. Explain which of the following are possible optimal responses regarding the consumption-leisure decision, and which are not. You must explain your choice and support your answers with graphs. a. The customer works more than x hours. b. The customer works x hours. c. The customer works, but less than it hours. d. The customer prefers not to work at all. e. The customer is indifferent between working more than it hours and working less than at hours