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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per unit. Rich
earns $15 per hour, and he has 16 hours in the day to allocate between working and leisure time. The figure be
depicts his budget line.
consumption
(units/day)
240
210
180
150
120
90
60
30
0.
21
4.
6.
8.
10 12
14
16
leisure
(hours/day)
Rich is thrilled to learn that his folks will give him a $10 daily allowance starting tomorrow. What happens to Rich's
opportunities tomorrow?
O a. Rich's endowment point shifts left $10.
Ob. His budget line shifts up 10 units of consumption per day.
O c. The slope of Rich's budget line increases (in absolute value) $10 per day.
O d. The slope of Rich's budget line decreases (in absolute value) $10 per hour.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c82151c-5a30-4c95-b4fc-a06b482828b3%2Fd49fb4e3-cafb-49f3-aac0-d26ec6176eb8%2Fhhm9jcy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per unit. Rich
earns $15 per hour, and he has 16 hours in the day to allocate between working and leisure time. The figure be
depicts his budget line.
consumption
(units/day)
240
210
180
150
120
90
60
30
0.
21
4.
6.
8.
10 12
14
16
leisure
(hours/day)
Rich is thrilled to learn that his folks will give him a $10 daily allowance starting tomorrow. What happens to Rich's
opportunities tomorrow?
O a. Rich's endowment point shifts left $10.
Ob. His budget line shifts up 10 units of consumption per day.
O c. The slope of Rich's budget line increases (in absolute value) $10 per day.
O d. The slope of Rich's budget line decreases (in absolute value) $10 per hour.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education