Answered: what is the budget line for consumption…

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

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 17P

See similar textbooks

Related questions

Q: Suppose your weekly allowance from your parents is $100 and your part-time job pays $10 per hour.…

A: The slope of the line representing the relationship between hours worked per week and income per…

Q: Jesse's utility function is given by U(L, C) = C(L+8). There are 16 hour in a day. His wage is…

A: GIVEN U ( L , C ) = C ( L + 8 ) MRS = L + 8 / C

Q: The graph below shows the budget constraint between income and leisure for an individual. The…

A: A budget constraint is defined as the combination of all the goods and services that a consumer can…

Q: Jack paid $13.75 to buy 3 slices of pizza and 4 hot dogs at a concession stand. Sarah paid $9.75 to…

A: A system of equations is frequently used in economics to model and examine different economic…

Q: consumption of income is $390 and APC is 0.34

A: APC is the Average Propensity to Consume Formula: APC = C/Y where, APC = Average Propensity to…

Q: Charles lives in New York City and loves to eat desserts. He spends his entire weekly allowance on…

A: The utility is maximum at the marginal utility per dollar is equal and in other words, the MRS is…

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: Find APC if consumption is $300 and income is $3000

A: The information being given is:- Consumption = $300 Income = $3000 APC = ?

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: write it out please

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

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: Suppose that there are, at most, 112 hour of leisure each week. In a fully labeled diagram in…

A: ANSWER Vertical intercept = Maximum number of hours available * wage rate Horizontal intercept =…

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: Rhoda’s preferences for consumption and leisure can be expressed as U(C, L) = (C - 100) × (L - 40).…

A: Optimal consumption is when MUL / MUC = w Where, MUL = Marginal utility of leisure MUC = Marginal…

Q: 5. Cindy gains utility from consumption C and Leisure L. Then most leisure she can consume in any…

A: a)Given, leisure = 110 hours Amount Cindy receives, C = $660 Marginal rate of substitution = C/L =…

Q: puppose Leela can afford exactly 10 pencils and 4 erasers when the prices are $1 per pencil and $5…

A: Given: Price Quantity: Price of pencil=$1 Price of eraser=$5 Number of pencils Leela can afford=10…

Q: Joko is a university student, working part-time at copying service center for Rp. 8/hour with zero…

A: The utility is the level of satisfaction which is derived from the labor income which is derived…

Q: SUBSTITUTION AND INCOME EFFECTS OF A WAGE INCREASE When the wage rate increases from $10 to $30 per…

A: The backward-bending labor supply curve is an economic concept that describes a situation where…

Q: Terry’s utility function over leisure (L) and other goods (Y) is U (L, Y) = Y + LY. The associated…

A: U(L,Y) = L+LY MUY=1+L MUL=Y Price of good=$1

Q: Problem Set 1. A firm's production function is º=50L – 0.012 , where L denotes the size of the…

A: Note: Since more than one individual questions are asked, we are going to answer the first question…

Q: Consider the following labor-leisure choice model. Utility function over consumption (C) and leisure…

A: When the prices of all other inputs and outputs are held constant, the substitution impact of a pay…

Q: Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on pudding…

A: Marginal rate of substitution can be explained as the rate at which a consumer is willing to give up…

Q: = A. Consider a consumer whose preferences can be represented by Cobb-Douglas utility function u(x1,…

A: Given Consumer utility function: u(x1,x2)=x113x223 .......(1) The price of good 1…

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: There are two consumers, Cindy and Shelly. Cindy’s marginal rate of substitution equals C/L.…

A: Consumption-leisure choice model: Individuals need to trade-off between how many hours to work and…

Q: Jones, without a job or job prospects, has been on social assistance for the past four months.…

A: Given:- Jones welfare benefit:B=600-0.75E Hourly wage=$11 To calculate:- Jones total income=?…

Q: Please help me find the marginal rate of substitution.

A: Marginal rate of substitution(MRS) is the amount of a product that a customer is ready to use in…

Question

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1T

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is the formula for the wage elasticity of labor supply?
Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?
If the price of a pie is 12, what is the maximum number of pies she could buy in a week?
If the price of a magazine is 4 each, what is the maximum number of magazines she could buy in a week?
Edna is living in a retirement home where home where most of her needs are taken care of, but she has some discretionary spending. Based on the basket of goods in Table 22.5, by what percentage does Ednas cost of living increase between time 1 and time 2
What is die price commonly called in the labor market?
Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.
The rules of politics are not always the same as the rules of economics. In discussions of setting budgets for government agencies, there is a strategy called closing the Washington Monument. When an agency faces the unwelcome prospect of a budget cut, it may decide to close a high-visibility attraction enjoyed by many people (like the Washington Monument). Explain in terms of diminishing marginal utility why the Washington Monument strategy is So misleading. Hint: If you are really trying to make the best of a budget cut, should you cut the items in your budget with tile highest marginal utility or line lowest marginal utility? Does the Washington Monument strategy cut the items with the highest marginal utility or line lowest marginal utility?
Go to this website (http://www.measuringworth.com/ppowerus/) for the Purchasing Power Calculator at measuringWorth.com. How much money would it take today to purchase what one dollar would have bought in the year of your birth?
Suppose Alphonsos town raised the price of bus tickets to 1 per trip (while file price of burgers stayed at 2 and his budget remained 10 per week.) Draw Alphonsos new budget constraint. What happens to file opportunity cost of bus tickets?
Use the four-step process to analyze the impact of the advent of the iPod (or other portable digital music players) on the equilibrium price and quantity of the Sony Wellman (or other portable audio cassette player).
If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?