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Income $2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 S C 800 600 A 400 200 0 10 20 30 40 50 60 70 80

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Income $2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 S C 800 600 A 400 200 0 10 20 30 40 50 60 70 80 90 100 110 Quantity of leisure (hours per week) 110. (Figure: Income and Leisure Opportunities) The figure Income and Leisure Opportunities refers to Keisha when she has 100 hours per week for working or leisure. There are two time allocation lines, one for a $10 hourly wage rate and one for a $20 hourly wage rate. Keisha's optimal choice is point A when the wage is $10, and her optimal choice is point C when the wage is $20. As the amount she earns increases from $10 per hour to $20 per hour, Keisha will work hours because of the income effect. A) 10 fewer B) 15 more C) 25 fewer At Ask Expert Tutors You can ask 4 questions (will exp D) 50 more

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