Sasha has 60 hours a week she can work or have leisure. Wages are $8/hour. a. Graph
Question:
a. Graph Sasha’s budget constraint for income and leisure.
b. Suppose wages increase to $10/hour. Graph Sasha’s new budget constraint.
c. When wages increase from $8/hour to $10/hour, Sasha’s leisure time decreases from 20 hours to 15 hours. Does her labor supply curve slope upward or downward over this wage increase?
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a and b See graph below c I...View the full answer
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