Angela has utility over consumption (C) and leisure (L) that is given byU(C,L)= (C0.5)+6(L0.5)where consumption is measured in dollars and leisure is measured in hours. Each week,Angela has 168 hours to devote to either leisure or working.Suppose Angela is offered a job that pays $10 per hour (such that, if she were to work everyhour of the week, she would earn $3,024). If Angela has no income besides that which sheearns from working, her budget constraint over consumption and leisure isC +18L = 3,024Solve for the levels of consumption and leisure that maximize Angela's utility subject to herbudget constraint. Angela's utility-maximizing consumption is $0168utility-maximizing number of leisure hours isin the blanks, and please round to the nearest whole numbers if necessary.)Herhours. (Enter only numbers

The consumer decides to have a decision among the leisure and consumption. If the consumer would…

Solve for the levels of consumption and leisure that maximize Angela's utility subject to her budget constraint. Angela's utility-maximizing consumption is $ 0 Her 168 utility-maximizing number of leisure hours is in the blanks, and please round to the nearest whole numbers if necessary.) hours. (Enter only numbers

Solve for the levels of consumption and leisure that maximize Angela's utility subject to her budget constraint. Angela's utility-maximizing consumption is $ 0 Her 168 utility-maximizing number of leisure hours is in the blanks, and please round to the nearest whole numbers if necessary.) hours. (Enter only numbers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Total utility (utils) 0 80 120 148 160 155 Quantity consumed per day 0 1 2 3 4 5 As shown in Exhibit above, the marginal utility for the second unit consumed is
Q3. Consider a utility function with one consumption good q1 and one type of leisure q2 c) Show mathematically and diagrammatically the decomposition of totaleffect.
what is the budget line for consumption and leisure if a person faces a constant wage of $5 per hour , there are 168 hours in the week to work,and she received non-labor income of 200 per week
2. Utility maximization - Trading off labor and leisure The indifference curves on the following graph show Amy's preferences for leisure and consumption for increasing levels of utility, such that her utility increases in both consumption and leisure. Assuming that Amy spends 68 hours each week sleeping, she has a maximum of 100 hours available to her for leisure if she does not work at all. Initially, she works 45 hours (and thus has 55 hours of leisure) and earns $250 per week. Use the grey point (star symbol) to indicate Amy's initial leisure/consumption bundle. Dashed drop lines will automatically extend to both axes. ? CONSUMPTION (Dollars per week) 1000 900 800 700 600 500 400 300 200 100 0 0 10 20 30 40 50 60 70 80 LEISURE (Hours per week) 90 100 110 Initial bundle $200 Unemployment Benefits Equivalent Bundle, $100 Unemployment Benefits Equivalent Bundle Now, suppose that Amy is laid off, but she is eligible to collect unemployment benefits of $200 per week. Use the black point…
just subparts a, b and c please
4. Steve's utility funetion over leisure and consumption is given by u(L,Y) = min (3L, Y). Wage rate is w and the price of the composite consumption good is p = 1. (a) Suppose w = 5. Find the optimal leisure - consumption combination. What is the amount of hours worked? (b) Suppose the overtime law is passed so that every worker needs to be paid 1.5 times their current wage for hours worked beyond the first 8 hours. Will this law induce Steve to work more hours? If so, how many? If not, explain.
Jeff spends all of his money on housing (H) and other stuff (S) and has a diminishing marginal rate of substitution between housing and stuff. Jeff used to live and work in a small town where housing prices were relatively low. His company has decided to transfer him to a large city where housing prices are higher. (For simplicity, assume that all other prices are the same.) Using a diagram, explain to Jeff's company how to find the amount it needs to raise his salary to keep him just as well after the 2. transfer as he was before. Tridor
Terry attends college and works part-time in a drug store. She can work up to 40 hours per week and is paid $9 per hour. With her schoolwork and other responsibilities, she only has 40 hours per week total to devote to work and leisure. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 5 45 35 10 34 10 90 59 15 48 15 135 77 20 56 20 180 86 25 60 25 225 92 30 65 30 270 98 35 69 35 315 103 40 72 40 360 107 Terry decides to decrease her work hours from 20 to 10. What will be her total utility from both leisure and income when working 10 hours per week?
Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVS) for your summer business and snowmobiles for your winter business. Your budget for new vehicles this year is $300,000. ATVS cost $6,000 each and snowmobiles cost $15,000 each. a. Draw the budget line for your purchase of new vehicles. Use the line drawing tool to draw a budget line. Properly label this line. Place end points one on horizontal and one on vertical axes. Carefully follow the instructions above, and only draw the required objects.
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table. Time cleaning windows (hours/day) Total number of windows cleaned 0 1 2 3 4 5 0 7 11 14 16 17 How many hours a day should John spend cleaning windows? Select one: a. 2 b. 4 c. 1 d. 3 NEXT PAGE
Jack's marginal utility of consumption is MUc = L - 6, and the marginal utility of leisure is MUL=C-40. Jack does not have any nonlabor income, i.e., V = 0. Jack faces a $48 an hour wage rate. Jack's total number of hours available per week is 150. What is Jack's optimal choice of consumption? (calculate to 2 decimal places)