Question: Rahul has 168 hours per week to divide between labour and leisure. Rahul can work up to 70 hours a week earning a wage of

Rahul has 168 hours per week to divide between labour and leisure. Rahul can work up to 70 hours a week earning a wage of $30, but faces a payroll tax of 30%. Given these constraints, Rahul chooses to work 40 hours per week. Graph the budget constraint and indicate the optimal choice, make sure to label all important points.

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