The wage is 10 dollars an hour and at this wage rate an individual chooses to work

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The wage is 10 dollars an hour and at this wage rate an individual chooses to work 8 hours a day. Draw budget constraints and indifference curves (with the regular shape) illustrating the labor supply effects of the following programs. Show (1) the original consumption bundle, (2) the new optimal consumption bundle and then comment on (3) all the possible labor supply effects.

A. Unemployment insurance is such that if you do not work you receive 80 dollars.

B. Unemployment insurance is such that if you do not work you receive 40 dollars.

Related Book For answer-question

Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Posted Date: Sep 30, 2020 01:01 AM

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The wage is 10 dollars an hour and at this wage rate an individual chooses to work

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wage rate w 10 Consider that maximum available hours 24 labor income of the consumer chooses to work ... View the full answer

Price theory and applications

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