Caroline and Alana are 2 sisters who live in a village called Deadend where no work is available. To go to the nearest city where jobs are available, they need to buy a bus pass for $50 dollars a week. Both receive an allowance of Yn from their parents.   Illustrate in two different graphs Caroline and Alana’s s situations in the following two cases:    Caroline’s preferences are such that she optimally decides to stay home receiving her parents’ allowance of Yn given the wage rate available in the nearest city and the cost of the bus pass. Alana’s preferences are such that she optimally chooses to commute and work h* given the wage rate and the cost of the bus pass and Yn.

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