=+9.4 In Graph 9.4, we illustrated how you can derive the labor supply curve from a consumer model in which workers choose between leisure and consumption.

A. In end-of-chapter exercise 3.1 you were asked to illustrate a budget constraint with labor rather than leisure on the horizontal axis. Do so again, assuming that the most you can work per week is 60 hours.

a. Now add to this graph an indifference curve that would make working 40 hours per week optimal.

b. Beginning with the graph you have just drawn, illustrate the same wealth and substitution effects as drawn in the top panel of Graph 9.4a for an increase in the wage.

c. Then, on a second graph right below it, put weekly labor hours on the horizontal axis and wage on the vertical, and derive the labor supply curve directly from your work in the previous graph. Compare the resulting graph with the lowest panel in Graph 9.4a.