Mr. Cog in Problem 7 has 18 hours a day to divide between labor and leisure. If he has 17 dollars of nonlabor income per day and gets a wage rate of 13 dollars per hour when he works, his budget equation, expressing combinations of consumption and leisure that he can afford to have, can be written as

Question

Quizplus · Accepted Answer

The budget equation is given by: 
Nonlabor income + Wage rate * labor hours = Consumption + Leisure

Substituting the given values, we get: 
17 + 13L = C + (18 - L)13

Simplifying the equation, we get: 
13L + C = 251

Therefore, the correct choice is D, 13R + C = 251.

Mr Cog in Problem 7 Has 18 Hours a Day