Suppose after sleeping 10 hours per day, Swiper is considering his choice between the remaining hours of free time (hence work hours) and his income or consumption per day. Swiper prefers to have both more consumption and more free time, if possible. Suppose Swiper's wage is $10/hour. His budget constraint and preferences (indifference curves) are given by thegraph below.

1. a)Along any indifference curve what is true about Swiper' level of utility
2. b)For three indifference curves in the graph, which indifference curve has the highest utility and which indifference curve has the lowest utility? How do you know?
3. c)What does the Marginal Rate of Transformation equal? What is being "transformed" into what?
4. d)Of the four points indicated in the graph, at which point or points is Swiper's Marginal Rate of substitution less (in absolute value) than the marginal rate of transformation? If Swiper is at this point Bootees what should he do if anything to increase his utility?
5. e)Of the four points indicated in the graph which point has the highest level of utility? Is this the point the optimal choice for Swiper? Give a reason for your answer!
6. f)What point in the graph is the optimal choice for Swiper? Give reasons for why this is the optimal choice?

g)Suppose Swiper's wage decreases to $5 per hour. What happens to Swiper's budget constraint? What willhappen to how much Swiper consumes per day? If Swiper chooses less free time (hence more work hours ) after wage decrease, what is true about his substitution effect relative to his income effect?