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11. The backward-sloping labor supply curve Lainey has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Lainey is paid by the hour, and that her job will always allow her to work as many hours as she chooses. The following graph presents Lainey's weekly leisure-income tradeoff. The three lines labeled BC₁, BC, and BC3 show her time allocation budget at three different hourly wage levels. The given points A, B, and C represent her optimal time allocation choices along each of these constraints. 1600 BC3 960 BC₂ C 480 BC₁ 0 30 35 40 LEISURE (Hours) For each listed point, use the preceding graph to complete the following table by Indicating the hourly wage as well as the number of hours per week Lainey will spend on labor and leisure. Point Wage (Dollars per hour) Leisure Labor (Hours) (Hours) A B с Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Lainey's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. 24 22 20 18 16 14 12 4 2 0 0 5 10 15 20 25 30 35 40 45 50 55 60 LABOR (Hours) Labor Supply Suppose that Lainey's initial budget line was BC₂ and that it then changed to BC3; therefore, Lainey's optimal time allocation choice shifted from B to C. As a result of this change, Lainey's opportunity cost of leisure region, the effect dominates the ▼, and she chose to consume leisure. Consequently, in this ▼effect. The corresponding portion of Lainey's labor supply curve is

11. The backward-sloping labor supply curve Lainey has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Lainey is paid by the hour, and that her job will always allow her to work as many hours as she chooses. The following graph presents Lainey's weekly leisure-income tradeoff. The three lines labeled BC₁, BC, and BC3 show her time allocation budget at three different hourly wage levels. The given points A, B, and C represent her optimal time allocation choices along each of these constraints. 1600 BC3 960 BC₂ C 480 BC₁ 0 30 35 40 LEISURE (Hours) For each listed point, use the preceding graph to complete the following table by Indicating the hourly wage as well as the number of hours per week Lainey will spend on labor and leisure. Point Wage (Dollars per hour) Leisure Labor (Hours) (Hours) A B с Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Lainey's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. 24 22 20 18 16 14 12 4 2 0 0 5 10 15 20 25 30 35 40 45 50 55 60 LABOR (Hours) Labor Supply Suppose that Lainey's initial budget line was BC₂ and that it then changed to BC3; therefore, Lainey's optimal time allocation choice shifted from B to C. As a result of this change, Lainey's opportunity cost of leisure region, the effect dominates the ▼, and she chose to consume leisure. Consequently, in this ▼effect. The corresponding portion of Lainey's labor supply curve is

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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11. The backward-sloping labor supply curve Lainey has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Lainey is paid by the hour, and that her job will always allow her to work as many hours as she chooses. The following graph presents Lainey's weekly leisure-Income tradeoff. The three lines labeled BC₁, BC₂, and BC, show her time allocation budget at three different hourly wage levels. The given points A, B, and C represent her optimal time allocation choices along each of these constraints. INCOME (Dollars) 1600 BC 960 BC2 480 BC₁ 0 0 30 35 40 LEISURE (Hours) For each listed point, use the preceding graph to complete the following table by Indicating the hourly wage as well as the number of hours per week Lainey will spend on labor and leisure. Point Wage (Dollars per hour) Leisure (Hours) Labor (Hours) A B C Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Lainey's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. ? WAGE (Dollars per hour) ནྰ སྐུ ཟླུ་ ཨཱ་ བྷ་ ལྟ་སྐ ་ 10 6 4 2 0 0 5 10 15 20 25 30 35 40 45 LABOR (Hours) 50 55 60 Labor Supply Suppose that Lainey's initial budget line was BC₂ and that it then changed to BC; therefore, Lainey's optimal time allocation choice shifted from B to C. As a result of this change, Lainey's opportunity cost of leisure region, the effect dominates the and she chose to consume leisure. Consequently, in this effect. The corresponding portion of Lainey's labor supply curve is
Transcribed Image Text:11. The backward-sloping labor supply curve Lainey has 80 hours per week that she can devote to time spent working or on leisure activities. Assume that Lainey is paid by the hour, and that her job will always allow her to work as many hours as she chooses. The following graph presents Lainey's weekly leisure-Income tradeoff. The three lines labeled BC₁, BC₂, and BC, show her time allocation budget at three different hourly wage levels. The given points A, B, and C represent her optimal time allocation choices along each of these constraints. INCOME (Dollars) 1600 BC 960 BC2 480 BC₁ 0 0 30 35 40 LEISURE (Hours) For each listed point, use the preceding graph to complete the following table by Indicating the hourly wage as well as the number of hours per week Lainey will spend on labor and leisure. Point Wage (Dollars per hour) Leisure (Hours) Labor (Hours) A B C Based on the data you entered in the preceding table, use the orange curve (square symbols) to plot Lainey's labor supply curve on the following graph, showing how much labor she supplies each week at each of the three wages. ? WAGE (Dollars per hour) ནྰ སྐུ ཟླུ་ ཨཱ་ བྷ་ ལྟ་སྐ ་ 10 6 4 2 0 0 5 10 15 20 25 30 35 40 45 LABOR (Hours) 50 55 60 Labor Supply Suppose that Lainey's initial budget line was BC₂ and that it then changed to BC; therefore, Lainey's optimal time allocation choice shifted from B to C. As a result of this change, Lainey's opportunity cost of leisure region, the effect dominates the and she chose to consume leisure. Consequently, in this effect. The corresponding portion of Lainey's labor supply curve is
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