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Budget set in terms of leisure

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Reference no: EM131382634

You are willing to work up to 80 hours a week. You make $10(5 + 1) an hour.

1. Define and graph your budget set in terms of leisure (equal to non-worked hours) -Good 1- and "money spent on every other good" -Good 2-.

2. Assume that above 40 hours per week you get an overtime hourly rate of$16(5 + 1) per hour. Define and graph the new budget set.

3. Assume that in addition to the over-time rate you also have $200(5 + 1) in your checking account. Define and graph the new budget set.

Reference no: EM131382634

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