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Jennifer faces a non-monetary fixed cost of work: she spends a substantial amount of time commuting to work on a daily basis. Which of the

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Jennifer faces a non-monetary fixed cost of work: she spends a substantial amount of time commuting to work on a daily basis. Which of the following diagrams best reflects the daily budget constraint with such a fixed time cost, reflected in the blue budget constraint (BC1)? (Note: BCo= without the fixed cost of work) [Hint: think carefully about what changes: slope, intercept or both? Does Jennifer incur this cost also when she does not work?]C C Yp Yp BCo BCo BC1 BC1 YN YN Lo Figure B Figure A C C YPBCo = BC, Yp BCO BC1 YM YN Lo Lo Figure D Figure C

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