A work has 70 possible hours of leisure (L) per week and can earn a wage of $30 per hour. Put dollar value of composite consumption (C) on vertical axis for a labor market consumer choice model.

a. Write down the budget constraint equation.

b. The worker is not allowed to work over 40 hours a week on the the same job. The second best job available to him offers $25 per hour. What is the new vertical-intercept of the budget constraint?

c. One of his relatives has set up a trust fund from which he receives $300 each week. What is the new endowment bundle?