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