Individual would divide his time after the salary increase

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Assume that an individual has 80 hours per week that can be distributed between two normal products work and leave ( leisure ) . Draw a bid curve for an individual who can earn a maximum of £ 10,000 per week if the individual does not have any leave ( leisure ) and earns zero kronor if the individual has 80 hours off per week . Draw a indifference curve tangent to the budget line and show how individuals divide their time between work and time off . Suppose now that the salary has increased dramatically, and the individual can earn up to £ 15,000 per week for 80 Timmers work. Analyzing the situation, how the individual will allocate their time. If we now assume that the leave is a inferiorvara to the individual how the individual would divide his time after the salary increase .

Reference no: EM131195291

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