Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per unit. Ric earns $15 per hour, and he has 16 hours in the day to allocate between working and leisure time. The figure b depicts his budget line. consumption (units/day) 240 210 180 150 120 90 60 30 leisure (hours/day) 0 2 4 68 10 12 14 16 ich is thrilled to learn that his folks will give him a $10 daily allowance starting tomorrow. What happens to Rich's pportunities tomorrow? O a. Rich's endowment point shifts left $10. O b. His budget line shifts up 10 units of consumption per day. Oc. The slope of Rich's budget line increases (in absolute value) $10 per day. Od. The slope of Rich's budget line decreases (in absolute value) $10 per hour. of

Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per unit. Ric earns $15 per hour, and he has 16 hours in the day to allocate between working and leisure time. The figure b depicts his budget line. consumption (units/day) 240 210 180 150 120 90 60 30 leisure (hours/day) 0 2 4 68 10 12 14 16 ich is thrilled to learn that his folks will give him a $10 daily allowance starting tomorrow. What happens to Rich's pportunities tomorrow? O a. Rich's endowment point shifts left $10. O b. His budget line shifts up 10 units of consumption per day. Oc. The slope of Rich's budget line increases (in absolute value) $10 per day. Od. The slope of Rich's budget line decreases (in absolute value) $10 per hour. of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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