Labor Economics 5th Edition by George Borjas

Exercise 27

You can either take a bus or drive your car to work. A bus pass costs $5 per week, whereas driving your car to work costs $60 weekly (parking, tolls, gas, etc.). You spend half-an-hour less on a one-way trip in your car than on a bus. How would you prefer to travel to work if your wage rate is $10 per hour Will you change your preferred mode of transportation if your wage rate rises to $20 per hour Assume you work five days a week and time spent riding on a bus or driving a car does not directly enter your utility.