Consider an individual who must drive to their place of work. Assume that there are 16 available hours in the day, that their wage rate is $20 per hour, and that they have nonlabour 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 the individual's labour supply choice, including their reser- vation wage. Analyze the impact of an increase in com- muting costs on their participation and hours decision. Analyze the impact, first, 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