Question
Good day Please assist me in completing the graph for the following information In a year there are 365 x 24 = 8760 hours. In
Good day
Please assist me in completing the graph for the following information
In a year there are 365 x 24 = 8760 hours. In a certain country the average wage rate is the equivalent of R60 per hour. The average work week is 40 hours and people work 48 weeks per year (i.e. 1920 hours per year). A decade later the average wage rate has increased to the equivalent of R90 per hour. The average hours worked per year has decreased to 1850 hours.
Draw a diagram with feasibility frontiers and indifference curves and explain how the income and substitution effects have resulted in this new equilibrium. Please start the X-axis with 6000.
Thank You
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