Please answer all parts of the questions below. Please provide clear, and complete answers. Show your work when applicable. 1.1 The following graph displays a field of budget constraints and indifference curves for Olivia. There are 3 budget constraints (ending at 120, 192 and 264 on the vertical axis) and 3 indifference curves (11, 12 and 13). Using the graph, answer the following questions: Income (per play) 264 192 120 12 24 -13 8 10 16 Hours of Leisure (per day) Wage (per hour) Hours of Work (per day) What is the wage rate for the budget constraint ending at 120 on the vertical axis? Call this wage 1. What are the wage rates for the 192 and 264 budget constraints? Call them wage 2 and wage 3 respectively. 1.2 Calculate Olivia's hours of work given wage rate 1? Call it hl. Calculate her hours of work given wage 2 and wage 3? Call them h2 and h3 respectively. Using the above information, graph Olivia's labor supply curve on the wage and hours of work graph (Graph NEATLY)? What is the shape of the labor supply curve?

Please answer all parts of the questions below. Please provide clear, and complete answers. Show your work when applicable. 1.1 The following graph displays a field of budget constraints and indifference curves for Olivia. There are 3 budget constraints (ending at 120, 192 and 264 on the vertical axis) and 3 indifference curves (11, 12 and 13). Using the graph, answer the following questions: Income (per play) 264 192 120 12 24 -13 8 10 16 Hours of Leisure (per day) Wage (per hour) Hours of Work (per day) What is the wage rate for the budget constraint ending at 120 on the vertical axis? Call this wage 1. What are the wage rates for the 192 and 264 budget constraints? Call them wage 2 and wage 3 respectively. 1.2 Calculate Olivia's hours of work given wage rate 1? Call it hl. Calculate her hours of work given wage 2 and wage 3? Call them h2 and h3 respectively. Using the above information, graph Olivia's labor supply curve on the wage and hours of work graph (Graph NEATLY)? What is the shape of the labor supply curve?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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