Consider an individual who must drive to his place of work. Assume that there are 16 available hours in the day, that his wage rate is $20 per hour, and that he has nonlabor income of $100 per day. The commute takes one hour each way, and it costs $40 in expenses for the round trip. Using a work-leisure diagram, depict his labor supply choice, including the reservation wage. Analyze the impact of an increase in commuting costs on his participation and hours decision. Analyze the impact of an increase in commuting time from two to four hours per day and second of an increase in driving expenses from $40 to $60 per round trip, keeping commuting time at two hours.