2) Suppose that the nominal wage rate is $10/hr, the average price of consumption goods is $2 and that you have 80 hours available per week to work. Assume that working is your only source of income. 3) Sketch out your budget line representing all the affordable combinations of leisure and consumption. Suppose that you currently decide to work 35 hours per week. Indicate this point on your graph. b) Suppose that your wage rate increases to $15. Show how this wage increase effects your budget set. What would be the effect on your labor decision? Indicate a new labor decision on the budget set. c) Use your answers to (a) and (b) to sketch your labor supply curve