1. A worker views leisure and income as "goods" and has an opportunity to work at an hourly wage of $16 per hour.

a) Illustrate the worker's opportunity set in a given 24-hour period.

b) Suppose the worker is always willing to give up $10 of income for each hour of leisure. Do her preferences exhibit a diminishing marginal rate of substitution?How many hours per day will she choose to work?

2. What are some of the things that can affect own price elasticity of demand?