Two individuals, Sam and Barb, derive utility from the hours of leisure (L) they consume and from the amount of goods (G) they consume. In order to maximize utility, they need to allocate the 24 hours in the day between leisure hours and work hours. The price of a good is equal to $1.00 and the price of leisure is equal to the hourly wage. We observe the following information about the choices that the two individuals make: Q 16- 14- 12- Sam Barb Sam Barb Price of Price 10- L L of L (hours) (hours) G ($) G ($) G 8- 7 13 10 77 98 1 132 1 11 10 12 154 1 15 7 14 255 150 6- Graphically, illustrate Sam's leisure demand curve and Barb's leisure demand curve. 4- 1.) Using the line drawing tool, draw Sam's leisure demand curve. Label this line D' 2- 2) Using the line drawing tool, draw Barb's leisure demand curve. Label this line D' 0- 0 4 в 8 10 12 14 Leisure (hours) Carefully follow the instructions above, and only draw the required objects. Wage (S)
Two individuals, Sam and Barb, derive utility from the hours of leisure (L) they consume and from the amount of goods (G) they consume. In order to maximize utility, they need to allocate the 24 hours in the day between leisure hours and work hours. The price of a good is equal to $1.00 and the price of leisure is equal to the hourly wage. We observe the following information about the choices that the two individuals make: Q 16- 14- 12- Sam Barb Sam Barb Price of Price 10- L L of L (hours) (hours) G ($) G ($) G 8- 7 13 10 77 98 1 132 1 11 10 12 154 1 15 7 14 255 150 6- Graphically, illustrate Sam's leisure demand curve and Barb's leisure demand curve. 4- 1.) Using the line drawing tool, draw Sam's leisure demand curve. Label this line D' 2- 2) Using the line drawing tool, draw Barb's leisure demand curve. Label this line D' 0- 0 4 в 8 10 12 14 Leisure (hours) Carefully follow the instructions above, and only draw the required objects. Wage (S)
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 16P: Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers....
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Transcribed Image Text:Two individuals, Sam and Barb, derive utility from the hours of leisure (L) they consume
and from the amount of goods (G) they consume. In order to maximize utility, they need
to allocate the 24 hours in the day between leisure hours and work hours. The price of a
good is equal to $1.00 and the price of leisure is equal to the hourly wage. We observe
the following information about the choices that the two individuals make:
Q
16-
14-
12-
Sam
Barb
Sam
Barb
Price of Price
10-
L
L
of L (hours) (hours) G ($)
G ($)
G
8-
7
13
10
77
98
1
132
1
11
10
12
154
1
15
7
14
255
150
6-
Graphically, illustrate Sam's leisure demand curve and Barb's leisure demand curve.
4-
1.) Using the line drawing tool, draw Sam's leisure demand curve. Label this line D'
2-
2) Using the line drawing tool, draw Barb's leisure demand curve. Label this line D'
0-
0
4
в
8
10
12
14
Leisure (hours)
Carefully follow the instructions above, and only draw the required objects.
Wage (S)
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