Baker observes a group of graduate students. At a wage of $25.00, the graduate students choose to work 20 hours a week. When the wage increases to $30.00, graduate students work 25 hours a week. What is the elasticity of hours worked with respect to the wage? Type your numeric answer and submit 1.22 You are correct Answered - Correct! Resubmit Baker observes the same group of graduate students, and finds that when the wage increases from $30.00 to $35.00, the graduate students' hours of work goes from 25 to 22. What is the elasticity of hours worked with respect to the wage in this case? Type your numeric answer and submit -0.83 You are correct Homework This is an advanced question, so just give it a try. Can you use indifference curves, and a budget line describing a choice between consumption/monetary income and leisure, to explain the results of the previous two questions? That is, how can it be that when wages increase from 25 to 30, hours worked INCREASE, but when wages then increase from 30 to 35, hours worked DECREASE? You may suppose that the typical graduate student has 40 hours of time for work or leisure in a week