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Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will earn a constant

Assume that you are 18 years old and deciding whether to go to university or start working. If you work, you will earn a constant wage WHS throughout your career. If you study, you pay tuition for four years and then earn a constant wage WUNI.

a. Show the condition under which you will choose to study. (1 Marks)

b. Explain how changes in tuition, interest rate, and wage differential (WUNI - WHS) would

affect your decision.

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