Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Total Utility Marginal Utility of Work Total Utility Marginal Utility from Income Leisure from Leisure Hours from Income Leisure Income 5 18 18 5 45 35 35 10 34 16 10 90 59 24 15 48 14 15 135 77 18 20 56 20 180 86 9 25 60 4 25 225 92 6. 30 65 5 30 270 98 6 35 69 4 35 315 103 40 72 3 40 360 107 4.
Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Total Utility Marginal Utility of Work Total Utility Marginal Utility from Income Leisure from Leisure Hours from Income Leisure Income 5 18 18 5 45 35 35 10 34 16 10 90 59 24 15 48 14 15 135 77 18 20 56 20 180 86 9 25 60 4 25 225 92 6. 30 65 5 30 270 98 6 35 69 4 35 315 103 40 72 3 40 360 107 4.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...
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1. What will be her total utility from both leisure and income when working 10 hours per week?
2. Does it make sense from the perspective of utility for Terry to decrease her work hours? (Think about the total utility calculations.). Why or Why not?
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