=+16.9 Business Application: Hiring an Assistant: Suppose you are a busy CEO with lots of consumption but relatively little leisure. I, on the other hand, have only a part-time job and therefore lots of leisure with relatively little consumption.

A. You decide that the time has come to hire a personal assistant, someone who can do some of the basics in your life so that you can have a bit more leisure time.

a. Illustrate our current situation in an Edgeworth Box with leisure on the horizontal and consumption on the vertical axis. Indicate an endowment bundle that fits the description of the problem and use indifference curves to illustrate a region in the graph where both of us would benefit from me working for you as an assistant.

b. Next, illustrate what an equilibrium would look like. Where in the graph would you see the wage that I am being paid?