b) Assume that your optimal choice of consumption and leisure is to work 8 hours per day. Illustrate this choice diagrammatically using the feasible set and indifference curves. c) Use indifference curves and the feasible set to show why, given the properties of the optimal choice in part b it is not optimal to work, say, 10, or 6 hours per day.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Answer please with added diagrams 

 

 

b) Assume that your optimal choice of consumption and leisure is to work 8 hours per day. Illustrate this choice diagrammatically using the feasible set and indifference curves.

c) Use indifference curves and the feasible set to show why, given the properties of the optimal choice in part b it is not optimal to work, say, 10, or 6 hours per day.

Consumption in GBP
288
Feasible frontier
E = (96, 16)
96
16
24
Leisure (in hours)
Transcribed Image Text:Consumption in GBP 288 Feasible frontier E = (96, 16) 96 16 24 Leisure (in hours)
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