1. Given the graph below, would Amy enter the LF? What is her reservation wage? MG) 30 Hours of NMT 15 16 2. Suppose Amy's nonlabor income increases and shifts her budget constraint to BE'. Given the graph below, what happened to Amy's reservation wage? How would Amy's work decision change? 0 Mp 16 Hours of NMT

1. Given the graph below, would Amy enter the LF? What is her reservation wage? MG) 30 Hours of NMT 15 16 2. Suppose Amy's nonlabor income increases and shifts her budget constraint to BE'. Given the graph below, what happened to Amy's reservation wage? How would Amy's work decision change? 0 Mp 16 Hours of NMT

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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