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Bessie. who can currently work as manyr hours as she wants at a wage of w. chooses to work 10 hours a day. Her boss
Bessie. who can currently work as manyr hours as she wants at a wage of w. chooses to work 10 hours a day. Her boss decides to limit the number of hours that she can work to 8 hours per day. Show how her budget constraint and choice of hours change. Elessie's budget constraint L is illustrated in the figure to the right. For completing the following, assume the indifference curves satisfy the usual assumptions. 1.} Use the 3point curved llne drawing tool to draw an indifference curve for Bessie when she can work as many hours as she wants. Label this curve 'l1'. 2.} Use the 3point curved llne drawing tool to draw an indifference curve representing Bessie's utility when she is restricted to work 8 hours per day. Label this curve 'IR'. Carefully follow the instructions above. and only draw the required objects. Y, Goods per day Time constr _ 10 8 L. Lalsure hours per dag.i
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