Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 21, Problem 8PA
Subpart (a):
To determine
The budget constraint between work and leisure.
Subpart (b):
To determine
The budget constraint between work and leisure.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
consider your decision about how many hours to work.
a. draw your budget assuming that you pay no takes on your income. on the diagram, draw another budget constraint assuming that you pay 15% tax.
b. show how the tax might lead to more hours of hours,fewer hours or the same number of hours. explain.
8. Problems and Applications Q8
Consider your decision about how many hours to work.
The following graph shows your budget constraint assuming that you pay no taxes on your income.
On the following graph, show the effect of a 15 percent income tax on your budget constraint.
Deborah is awake for 100 hours per week.
Use the green line (triangle symbol) to draw Deborah's budget constraint if she earns $12 per hour. Then use the blue line (circle symbol) to draw her budget constraint if she earns $16 per hour. Finally, use the purple line (diamond symbol) to draw her budget constraint if she earns $20 per hour.
If a consumer's income decreases, what will happen to the budget line? It will shift outward. It will become steeper. It will become flatter. It will shift inward.
Chapter 21 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 21.1 - Prob. 1QQCh. 21.2 - Prob. 2QQCh. 21.3 - Prob. 3QQCh. 21.4 - Prob. 4QQCh. 21 - Prob. 1QRCh. 21 - Prob. 2QRCh. 21 - Prob. 3QRCh. 21 - Prob. 4QRCh. 21 - Prob. 5QRCh. 21 - Prob. 6QR
Ch. 21 - Prob. 7QRCh. 21 - Prob. 1QCMCCh. 21 - Prob. 2QCMCCh. 21 - Prob. 3QCMCCh. 21 - Prob. 4QCMCCh. 21 - Prob. 5QCMCCh. 21 - Prob. 6QCMCCh. 21 - Prob. 1PACh. 21 - Prob. 2PACh. 21 - Prob. 3PACh. 21 - Prob. 4PACh. 21 - Prob. 5PACh. 21 - Prob. 6PACh. 21 - Prob. 7PACh. 21 - Prob. 8PACh. 21 - Prob. 9PACh. 21 - Prob. 10PACh. 21 - Prob. 11PACh. 21 - Prob. 12PACh. 21 - Prob. 13PA
Knowledge Booster
Similar questions
- 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)arrow_forwardUsing a graph of budget lines and indifference curves, show how an increase in the price of bananas affects the amount of time the individual works.arrow_forwarddraw the budget constraint for a person with income of $ 1000 if the price of pepsi is $5 and the price of pizza is $10 what is the slop of their budget constraintope of their budgetarrow_forward
- Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works. Tom receives $80 in child support payments each week. There are 168 hours in the week. Graph Tom’s weekly budget line.arrow_forwardDraw budget constraint if he has income of Rs. 1000 which he can spend on buying Pizzas and Pepsi cans (Price of a Pizza is Rs.100 and price of a can of Pepsi is Rs.20)arrow_forwardI have to create a budget constraint for two cars with the median income. However, the income is smaller than the price of the cars. How can I approach this question?arrow_forward
- A family with a monthly income of $2200 spends $850 for rent $225 for utilities and $325 for food. What percent of the family income is spent for cach?arrow_forwardConsider a graph with paper on the x-axis and pencils on the y-axis. If income increases, then (select all that apply): Check All That Apply the budget constraint will become steeper (the absolute value of the slope will increase).the budget constraint will become steeper (the absolute value of the slope will increase). the budget constraint will become flatter (the absolute value of the slope will decrease). the budget constraint will become flatter (the absolute value of the slope will decrease). the slope of the budget constraint will not change.the slope of the budget constraint will not change. the x-intercept will increase.the x-intercept will increase. the x-intercept will decrease.the x-intercept will decrease. the x-intercept will not change.the x-intercept will not change. the y-intercept will increase.the y-intercept will increase. the y-intercept will decrease.the y-intercept will decrease. the y-intercept will not change.arrow_forwardWrite down the equation for the budget constraint and then graph it for .. Px = $100 Py = $25 Income = $5,000.00arrow_forward
- Find the attached file.arrow_forward529. Exercise. Marsha has a job which pays $30 per hour and which allows her to work for as many hours as she would like. Unfortunately, she has a kidney disease and must spend 3 hours each day traveling to the hospital and getting dialysis. Her utility function is x²y, where r is hours of leisure and y is dollars spent on consumption goods. (a) Write down Marsha's budget constraint in terms of dollars. write down Marsha's budget constraint in terms of hours. (b) How many hours each day does Marsha work? she spend on consumption goods? (c) Suppose Marsha gets a kidney transplant and no longer needs dialysis. How many more hours will Marsha work? (The answer might be negative.) How many more dollars will she spend on consumption goods? (Again, the answer might be negative.) | Then |How many dollars doesarrow_forwardSuppose that a consumer has an income of $10 per period, and that he must spend it all on meat or potatoes. If meat is $2.00 per pound and potatoes are $2.00 per pound, draw the consumer's budget line on a graph. identify the quantity of meat and potatoes that would be consumed.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning