Suppose w = 5 and the government gives Anne a subsidy of $150. She receives this money unconditionally, regardless of how many hours she works. We define Anne's budget set over bundles of C and L, i.e. (C,L). Placing C on the horizontal axis and L on the vertical axis, depict Anne's budget set. The outer boundary of Anne's budget set has a kink at (C,L)= (150) (fill in the blank) Suppose w = 5 and the government gives Anne a subsidy such that her consumption is at least $150. That is, if she does not work at all, the government gives her $150. If she works enough to earn some d dollars towards consumption, the government gives her $150 - d. If she works enough to earn d≥ 150, the government does not give her anything. We define Anne's budget set over bundles of C and L, i.e. (C,L). Placing C on the horizontal axis and L on the vertical axis, depict Anne's budget set. The outer boundary of Anne's budget set has two kinks. One kink - the one with the higher L of the two - is at (C,L)=(150) (fill in the blank) ... while the other kink - the one with the lower L of the two is at is at (C,L)=(150, _) (fill in the blank)....

Suppose w = 5 and the government gives Anne a subsidy of $150. She receives this money unconditionally, regardless of how many hours she works. We define Anne's budget set over bundles of C and L, i.e. (C,L). Placing C on the horizontal axis and L on the vertical axis, depict Anne's budget set. The outer boundary of Anne's budget set has a kink at (C,L)= (150) (fill in the blank) Suppose w = 5 and the government gives Anne a subsidy such that her consumption is at least $150. That is, if she does not work at all, the government gives her $150. If she works enough to earn some d dollars towards consumption, the government gives her $150 - d. If she works enough to earn d≥ 150, the government does not give her anything. We define Anne's budget set over bundles of C and L, i.e. (C,L). Placing C on the horizontal axis and L on the vertical axis, depict Anne's budget set. The outer boundary of Anne's budget set has two kinks. One kink - the one with the higher L of the two - is at (C,L)=(150) (fill in the blank) ... while the other kink - the one with the lower L of the two is at is at (C,L)=(150, _) (fill in the blank)....

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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