Suppose your only source of income is work and that you are paid $20 per hour. This determines a budget constraint. You can buy free time at the expense of your income by working less. Likewise, you can get more income at the expense of your free time by working more. Suppose that you can choose how many hours you work. 2. Calculate your weekly income if you work 40 hours per week.  Now suppose that your hourly rate drops to $15 because of an economic downturn and you decide to work 43 hours a week. How much is your weekly income going to be? (Show your calculations)

Q: Amy lives in Detroit and loves to eat desserts. She spends her entire weekly allowance on yogurt and…

A: At the optimal consumption point, MRS = Price ratio Here, given value of MRS is 5. Price ratio =…

Q: Income $240 $192 Leisure 15 16 17 a) Using the above diagram, decompose the effect of a wage…

A: Hi! Thank you for the question, as per the honor code, we are allowed to answer three sub-parts at a…

Q: Suppose the individual has 1600 hours per week they can allocate between leisure and work. IF the…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Carol and Brent are a two-person household. Carol's market hourly wage is $50, but Carol can also…

A: In a market, a firm can be specialized in the production of good or service when it is able to…

Q: Roberto has $10 to allocate between a apples and bananas. The price of an apple is $1.00 and the…

A: The income of the person is $10. Also, the price of apples (Pa) is $1 The price of bananas (Pb) is…

Q: 5. Rhoda’s preferences for consumption and leisure can be expressed as U(C, L) = (C - 100) × (L -…

A: In economics, utility refers to the satisfaction or happiness obtained from the consumption of goods…

Q: Sarah’s weekly wage rate was reduced due to the company she works for cutting staff wage rates.…

A: To illustrate the scenario described involving Sarah's wage reduction and her decision to reduce her…

Q: Use the green line (triangle symbol) to draw Eileen's budget constraint if she earns $12 per hour.…

A: In a perfectly competitive labor market, the equilibrium wage rate is determined by the market…

Q: (Short Answers) 1. Jie works in a university. He can work as many hours as he wishes at a wage rate…

A: Budget line is the fancy term for the maximum amount of products or services one can get within the…

Q: Suppose that a person has 2000 hours to allocate each year between leisure and work. a. Derive the…

A: Budget line:It is a graphical representation of the various combinations of two items. That is the…

Q: Deborah has 80 hours per week available for work and leisure. Her current wage rate is $25 per hour.…

A: Question 1: The number of hours available for Deborah is 80 hours per week for both work and…

Q: A rightward shift of the demand curve product Z can be reasonably explained by saying that: Multiple…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Consider a worker who earns $20/hour in the labor market and receives $50 per week in non-labor…

A: LaborThe labor market is the job market for the supply and demand for employment. It is a major part…

Q: A worker has preferences given by the utility function U(N, Y) = N " Y where N is the hours of…

A: A budget constraint, in short, is a financial limitation that reflects the available income or…

Q: Fill in the blanks and round to 2 decimals where needed. Katie has 75 hours per week to allocate to…

A: Here's the given information provided in the problem statement:Katie has 75 hours per week to…

Q: a) Chika has calculated the marginal utility that she derives from her paid employment and from…

A: Chika will assign each extra hour to the activity that provides a greater marginal utility. Marginal…

Q: 2. [For this question, the unit used is in thousands of Rupiah]. Rihana's preferences for…

A: reservation fee is the MRS at the endowment. why so ? because MRS shows us that the rate at which…

Q: a) Chika has calculated the marginal utility that she derives from her paid employment and from…

A: Marginal utility represents the additional satisfaction obtained from consuming an additional unit…

Q: If a person works a standard 8 hour day he will be at Point C on the graph. At C, how many hours of…

A: Here, we are assuming that there are 24 hours in a day that a person can divide between working…

Q: write it out please

A: An indifference curve is a graphical representation that shows various combinations of income and…

Q: Suppose your only source of income is work and that you are paid $20 per hour. This determines a…

A: Calculate the Hours of free time  Before changed you have 40 hours at the rate of $20 per hour…

Q: just subparts d, e and f please

A: d)If the consumer wage rate increases to $50, the consumer budget line becomes: C = 50(80 - L) +…

Q: Bessie, who can currently work as many hours as she wants at a wage of w, chooses to work 10 hours a…

A: An indifference curve is a graphical representation used in microeconomics to illustrate a…

Q: Suppose you earn an income of $50000 a year. You purchase the bundle of goods and services on your…

A: A budget constraint is a concept used in economics to describe the total number of products you can…

Q: Your wage increases by 25%. If you want to keep your income constant: Select one: You can only do so…

A: Here, it is given that an individual gets an increase in his wage rate by 25%, but he wants to keep…

Q: iscuss the possible substitution effect and the income effect of an increase in income on leisure…

A: In general, income often is considered as the amount of money that an individual or entity get as a…

Q: Suppose your only source of income is work and that you are paid $20 per hour. This determines a…

A: Higher salaries have a substitution impact, which indicates that workers will forego leisure time in…

Q: Sonya's Personal Monthly Family Budget $350 Retirement $252- College $455 Taxes Savings Savings $906…

A: A personal budget is a plan which help in allocation personal income of future towards…

Q: Rebecca's wage is $10 per hour, and she can work up to 60 hours per week. The table and the budget…

A: A budget constraint represents all the combinations of goods and services that a consumer may…

Q: Help!

A: Explanation is given below Explanation:

Q: Suppose the price of bananas falls. Explain how the income and substitution effects work in the…

A: The income effect depicts the improvement in the purchasing power of the consumers due to a rise in…

Q: Now, suppose that Amy is laid off, but she is eligible to collect unemployment benefits of $200 per…

A: The utility maximization is a concept that describes the process of choosing the option that…

Q: just subparts a, b and c please

A: To solve this problem, we need to understand the concept of utility maximization and the budget…

Q: Terry attends college and works part-time in a drug store. She can work up to 40 hours per week and…

A: Terry has only 40 hours per week in which she can work with wage of $9 per hour Hours of Leisure…

Q: Suppose you own an outdoor recreation company and you want to purchase all-terrain vehicles (ATVs)…

A: A line that shows the combination of two goods or services that a consumer can buy given a specific…

Q: John is trying to decide how to divide his time between his job as a stocker in the local grocery…

A: The opportunity cost describes the potential benefit forgone for choosing one alternative over…

Q: Refer to the following diagram. Point A is 24 hours, C is 14 hours, D is 8 hours, and E is 6 hours.…

A: Consumption – Leisure Model: In this model the household determine how he allocate his time between…

Q: Jack's marginal utility of consumption is MUc = L - 6, and the marginal utility of leisure is…

A: The budget constraint that the Jack faces is :- pC =  w (150 - L )  here assume p = 1  and the 150 -…

Q: For a subsistence agricultural household, which of the following happen when the price of the staple…

A: Consumer theory studies the behaviors of consumers, how consumer spends their limited income given…