Leslie works from home as an IT consultant and consumes only two goods: work (W), which is measured in hours, and consumption (C), which is measured in dollars. Normally she works 40 hours a week and is paid $25 per hour. However, she can be contracted for an additional 30 hours a week at $44 per hour. Leslie cannot work for more than 70 hours a week. For all following questions, round answers to 3 decimal places where necessary.
Leslie works from home as an IT consultant and consumes only two goods: work (W), which is measured in hours, and consumption (C), which is measured in dollars. Normally she works 40 hours a week and is paid $25 per hour. However, she can be contracted for an additional 30 hours a week at $44 per hour. Leslie cannot work for more than 70 hours a week. For all following questions, round answers to 3 decimal places where necessary.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 9PA
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Question
![Leslie works from home as an IT consultant and consumes only two goods: work (W), which is measured
in hours, and consumption (C), which is measured in dollars. Normally she works 40 hours a week and
is paid $25 per hour. However, she can be contracted for an additional 30 hours a week at $44 per hour.
Leslie cannot work for more than 70 hours a week. For all following questions, round answers to 3 decimal
places where necessary.
a) What is the maximum consumption available to Leslie if she works 35 hours a week?
b) What is the minimum number of hours Leslie must work to attain $600 of consumption?
c) At which level of consumption does the kink in the budget line occur?
d) What is the maximum consumption available to Leslie if she works 70 hours a week?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd5e0332-0650-432d-b006-8bd12fae84dd%2Fb753038c-f466-428b-9e9e-580b6e2a7fed%2Fmjbp0q_processed.png&w=3840&q=75)
Transcribed Image Text:Leslie works from home as an IT consultant and consumes only two goods: work (W), which is measured
in hours, and consumption (C), which is measured in dollars. Normally she works 40 hours a week and
is paid $25 per hour. However, she can be contracted for an additional 30 hours a week at $44 per hour.
Leslie cannot work for more than 70 hours a week. For all following questions, round answers to 3 decimal
places where necessary.
a) What is the maximum consumption available to Leslie if she works 35 hours a week?
b) What is the minimum number of hours Leslie must work to attain $600 of consumption?
c) At which level of consumption does the kink in the budget line occur?
d) What is the maximum consumption available to Leslie if she works 70 hours a week?
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