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The following diagram depicts a utility-maximizing consumer choosing between income m and leisure hours 1 during a particular day. The wage along budget line A
The following diagram depicts a utility-maximizing consumer choosing between income m and leisure hours 1 during a particular day. The wage along budget line A is $2 per hour; that along B is $4 per hour. B 10 15 24 1)With a wage of $4 per hour: a. How many leisure hours does the consumer choose (2 points)? b. How many hours does he/she work? Why (2 points)? c. What is his/her income (i.e., the value of m")? Why (4 points)? 2). Is the labor supply curve between wages of $2 and $4 for this consumer upward sloping or downward sloping? Why (2 points)
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