Assume you can work as many hours per day as you wish at £20 per hour, after tax. You have no other income. You have no ability to borrow or lend. a) Show how this information can be used to illustrate a feasible set, showing the choice between leisure time per day on the x-axis, and general consumption on the y-axis. Label the axes and intercepts. Draw some indifferences curves and show where the optimal point would be.
Assume you can work as many hours per day as you wish at £20 per hour, after tax. You have no other income. You have no ability to borrow or lend. a) Show how this information can be used to illustrate a feasible set, showing the choice between leisure time per day on the x-axis, and general consumption on the y-axis. Label the axes and intercepts. Draw some indifferences curves and show where the optimal point would be.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 2SCQ: Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to...
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