QUESTION 1The weekly income and leisure information in the table below belongs to the indifference curves I, IIand III..Weekly IncomeWeekly LeisureIIIIIIII4505005502040300350400103050200250300204060150200250305070100150200507090A)a) Using the table, draw the indifference curves I, Il and II.b) Assuming that there is a maximum of 100 hours per week for working and leisure time and there isno non-wage income, draw the budget constraint on the same graph when the wage per hour is 4 TL.c) What is the slope of the budget constraint?d) How many hours will the person work a week and how much free time will they use?e) How much income will the person earn?B)Using the indifference curves ABOVE, draw a budget constraint on a new figure according to thesituation where the wage rate is 7.5 TL per hour. How many hours does this person work per week?How many hours of free time does he use? How much income does it earn?C)Combine the two graphs in A and B on the same figure.a) Show income and substitution effects on this figure.b) Based on the magnitude of these effects, is this person a person who enjoys leisure time or is he aworking patient?

Answered: Image /qna-images/answer/5d71a903-10cd-4176-b123-c486875e76d2.jpg

QUESTION 1 The weekly income and leisure information in the table below belongs to the indifference curves I, II and II.. Weekly Income Weekly Leisure II II II II 450 500 550 20 40 300 350 400 10 30 50 200 250 300 20 40 60 150 200 250 30 50 70 100 150 200 50 70 90 A)a) Using the table, draw the indifference curves I, Il and III. b) Assuming that there is a maximum of 100 hours per week for working and leisure time and there is no non-wage income, draw the budget constraint on the same graph when the wage per hour is 4 TL. c) What is the slope of the budget constraint?

QUESTION 1 The weekly income and leisure information in the table below belongs to the indifference curves I, II and II.. Weekly Income Weekly Leisure II II II II 450 500 550 20 40 300 350 400 10 30 50 200 250 300 20 40 60 150 200 250 30 50 70 100 150 200 50 70 90 A)a) Using the table, draw the indifference curves I, Il and III. b) Assuming that there is a maximum of 100 hours per week for working and leisure time and there is no non-wage income, draw the budget constraint on the same graph when the wage per hour is 4 TL. c) What is the slope of the budget constraint?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 3SQP

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