Leo thinks leisure and consuming goods are perfect complements.Goods cost $1 per unit.Leo wants to consume 5 units of goods per hour of leisure.Leo can work as much as he wants to at the wage rate of $15 an hour.He has no other source of income.
a.How many hours a day will Leo choose to spend at leisure?
b.Draw a diagram showing Leo's budget and his choice of goods and leisure.
c.Will Leo work more or less if his wage rate increases?

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The Answer of Leo thinks leisure and consuming goods are perfect complements.Goods cost $1 per unit.Leo wants to consume 5 units of goods per hour of leisure.Leo can work as much as he wants to at the wage rate of $15 an hour.He has no other source of income.
a.How many hours a day will Leo choose to spend at leisure?
b.Draw a diagram showing Leo's budget and his choice of goods and leisure.
c.Will Leo work more or less if his wage rate increases?

Leo Thinks Leisure and Consuming Goods Are Perfect Complements