a) If Kyeiwaa has GhC 50 of non-labor income per week, and she faces a market wage rate of GhC 5 per hour; and has 110 hours of nonsleeping hours to allocate between work and leisure activities (assuming she sleeps roughly 8hours per day) b) Write down the budget equation for Kyeiwaa c) Graph Kyeiwaa 's budget line. d) Assuming leisure is a normal good (with the aid of a graph), describe what will happen to Kyeiwaa 's hours of work if her non-labour income increases.
a) If Kyeiwaa has GhC 50 of non-labor income per week, and she faces a market wage rate of GhC 5 per hour; and has 110 hours of nonsleeping hours to allocate between work and leisure activities (assuming she sleeps roughly 8hours per day) b) Write down the budget equation for Kyeiwaa c) Graph Kyeiwaa 's budget line. d) Assuming leisure is a normal good (with the aid of a graph), describe what will happen to Kyeiwaa 's hours of work if her non-labour income increases.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
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Transcribed Image Text:a) If Kyeiwaa has GhC 50 of non-labor income per week, and she faces a
market wage rate of GhC 5 per hour; and has 110 hours of nonsleeping
hours to allocate between work and leisure activities (assuming she sleeps
roughly 8hours per day)
b) Write down the budget equation for Kyeiwaa
c) Graph Kyeiwaa 's budget line.
d) Assuming leisure is a normal good (with the aid of a graph), describe
what will happen to Kyeiwaa 's hours of work if her non-labour income
increases.
e) If Kyeiwaa 's substitution effect dominates her income effect, with the aid
of a diagram describe what will happen to her hours of work when her wage
increases.
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