Sameena works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for 110 hours a week. Also suppose that part of this time she can spend on earning money doing this job and using it for her consumption, and the rest of the time she can spend on her leisure not earning money. At first she earns Rs.550 for every hour she works. Draw a figure showing Saima’s budget constraint, her indifference curve for consumption and leisure and her optimum.
Sameena works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for 110 hours a week. Also suppose that part of this time she can spend on earning money doing this job and using it for her consumption, and the rest of the time she can spend on her leisure not earning money. At first she earns Rs.550 for every hour she works. Draw a figure showing Saima’s budget constraint, her indifference curve for consumption and leisure and her optimum.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sameena works as a free-lance worker at a software house in Rawalpindi. Suppose
she keeps awake for 110 hours a week. Also suppose that part of this time she can
spend on earning money doing this job and using it for her consumption, and the rest
of the time she can spend on her leisure not earning money. At first she earns Rs.550
for every hour she works. Draw a figure showing Saima’s budget constraint, her
indifference curve for consumption and leisure and her optimum.
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