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Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498 Exercise 1
Sasha has 60 hours a week she can work or have leisure. Wages are $8/hour.
a. Graph Sasha's budget constraint for income and leisure.
b. Suppose wages increase to $10/hour. Graph Sasha's new budget constraint.
c. When wages increase from $8/hour to $10/ hour, Sasha's leisure time decreases from 20 hours to 15 hours. Does her labor supply curve slope upward or downward over this wage increase?
a. Graph Sasha's budget constraint for income and leisure.
b. Suppose wages increase to $10/hour. Graph Sasha's new budget constraint.
c. When wages increase from $8/hour to $10/ hour, Sasha's leisure time decreases from 20 hours to 15 hours. Does her labor supply curve slope upward or downward over this wage increase?
Explanation
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Budget constraints:
Budget constraint r...
Economics 1st Edition by Dean Karlan,Jonathan Morduch
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