Refer to the following table. If Jane's hourly wage rose from $2 per hour to $4 an hour and Jane had 6 hours to work or play, Jane would: $\begin{array}{l}
\begin{array}{|c|c|c|c|}
\hline\text { Spending}&\text { Total Utility of spending(\$)}&\text { Hours of leisure }&\text { Total utility of leisure }\
\hline \$ 2 & 60 & 1 & 30 \
\hline \$ 4 & 110 & 2 & 54 \
\hline \$ 6 & 148 & 3 & 70 \
\hline \$ 8 & 172 & 4 & 78 \
\hline \$ 10 & 180 & 5 & 78 \
\hline \$ 12 & 186 & 6 & 70 \
\hline
\end{array}
\end{array}$
A) work 4 hours and play 2 hours when her wage is $2/hour but then work 3 hours and play 3 hours when her wage is $4 an hour.
B) work 4 hours and play 2 hours when her wage is $2/hour but then work 6 hours when her wage is $4 an hour.
C) not work at $2 an hour and not play at $6 an hour.
D) not play at either wage.

Question

Refer to the following table. If Jane's hourly wage rose from $2 per hour to $4 an hour and Jane had 6 hours to work or play, Jane would: $\begin{array}{l}
\begin{array}{|c|c|c|c|}
\hline\text { Spending}&\text {  Total Utility of spending(\$)}&\text {  Hours of leisure }&\text { Total utility of leisure }\
\hline \$ 2 & 60 & 1 & 30 \
\hline \$ 4 & 110 & 2 & 54 \
\hline \$ 6 & 148 & 3 & 70 \
\hline \$ 8 & 172 & 4 & 78 \
\hline \$ 10 & 180 & 5 & 78 \
\hline \$ 12 & 186 & 6 & 70 \
\hline
\end{array}
\end{array}$
A) work 4 hours and play 2 hours when her wage is $2/hour but then work 3 hours and play 3 hours when her wage is $4 an hour.
B) work 4 hours and play 2 hours when her wage is $2/hour but then work 6 hours when her wage is $4 an hour.
C) not work at $2 an hour and not play at $6 an hour.
D) not play at either wage.

Quizplus · Accepted Answer

When Jane's wage is $2/hour, she maximizes utility by working 4 hours (earning $8) and playing 2 hours (total utility = 172). When her wage increases to $4/hour, she maximizes utility by working 3 hours (earning $12) and playing 3 hours (total utility = 186).

Refer to the Following Table A) Work 4 Hours and Play 2 Hours When Her