Essay
(Figure: Budget Constraint for Work or Leisure I) 
a. Graph a budget constraint assuming a person has 24 hours that can be used for work or leisure at a wage rate of $20. Note the optimal consumption-leisure bundle.
b. Graph a budget constraint assuming a person has 24 hours that can be used for work or leisure at a wage rate of $30. Note the optimal consumption-leisure bundle.
c. Determine both the income and substitution effects on the graph.
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a. Please see the above graph. With 24...View Answer
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Correct Answer:
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a. Please see the above graph. With 24...
View Answer
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