Question
Suppose that there are, at most, 112 hour of leisure each week. In a fully labeled diagram in leisure-income space, depict graphically the following situation:
Suppose that there are, at most, 112 hour of leisure each week. In a fully labeled diagram in leisure-income space, depict graphically the following situation: a) if the wage rate is $10/hour, the optimal work-week would be 40 hours; b) if the wage rate is $15/hour, the optimal work-week would be 80 hours; c) if the wage rate is $20/hour, the optimal work-week would be 60 hours. d) from the above information, does it appear that the worker has a target income? Explain what the term "target income" means and indicate what does it appears to be in this example.
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