Consider a one-period model in which the representative consumer splits 100 hours of available time between work hours denoted by NS and leisure hours denoted by L. The consumer receives wage rate w = 9 for every hour worked. In addition, the consumer receives dividend income = 29 and pays lump-sum taxes T = 81. Derive the budget constraint of the consumer. Type in the appropriate numerical values in the boxes provided below to obtain the equation that defines the budget constraint of the consumer All numerical values should be integers, hence use 0 decimal places. The budget constraint is C = XL, where the symbol x denotes a multiplication sign.

Consider a one-period model in which the representative consumer splits 100 hours of available time between work hours denoted by NS and leisure hours denoted by L. The consumer receives wage rate w = 9 for every hour worked. In addition, the consumer receives dividend income = 29 and pays lump-sum taxes T = 81. Derive the budget constraint of the consumer. Type in the appropriate numerical values in the boxes provided below to obtain the equation that defines the budget constraint of the consumer All numerical values should be integers, hence use 0 decimal places. The budget constraint is C = XL, where the symbol x denotes a multiplication sign.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Consider a one-period model in which the representative consumer splits 100 hours of available
time between work hours denoted by NS and leisure hours denoted by L. The consumer
receives wage rate w = 9 for every hour worked. In addition, the consumer receives dividend
income = 29 and pays lump-sum taxes T = 81.
Derive the budget constraint of the consumer. Type in the appropriate numerical values in the
boxes provided below to obtain the equation that defines the budget constraint of the consumer.
All numerical values should be integers, hence use 0 decimal places.
The budget constraint is C =
-XL, where the symbol x denotes a multiplication sign.

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