Two individuals, Sam and Barb, derive utility from the hours of leisure (L) they consume and from the amount of goods (G) they consume. In order to maximize utility, they need to allocate the 24 hours in the day between leisure hours and work hours. The price of a good is equal to $1.00 and the price of leisure is equal to the hourly wage. We observe the following information about the choices that the two individuals make: Q 16- 14- 12- Sam Barb Sam Barb Price of Price 10- L L of L (hours) (hours) G ($) G ($) G 8- 7 13 10 77 98 1 132 1 11 10 12 154 1 15 7 14 255 150 6- Graphically, illustrate Sam's leisure demand curve and Barb's leisure demand curve. 4- 1.) Using the line drawing tool, draw Sam's leisure demand curve. Label this line D' 2- 2) Using the line drawing tool, draw Barb's leisure demand curve. Label this line D' 0- 0 4 в 8 10 12 14 Leisure (hours) Carefully follow the instructions above, and only draw the required objects. Wage (S)
Two individuals, Sam and Barb, derive utility from the hours of leisure (L) they consume and from the amount of goods (G) they consume. In order to maximize utility, they need to allocate the 24 hours in the day between leisure hours and work hours. The price of a good is equal to $1.00 and the price of leisure is equal to the hourly wage. We observe the following information about the choices that the two individuals make: Q 16- 14- 12- Sam Barb Sam Barb Price of Price 10- L L of L (hours) (hours) G ($) G ($) G 8- 7 13 10 77 98 1 132 1 11 10 12 154 1 15 7 14 255 150 6- Graphically, illustrate Sam's leisure demand curve and Barb's leisure demand curve. 4- 1.) Using the line drawing tool, draw Sam's leisure demand curve. Label this line D' 2- 2) Using the line drawing tool, draw Barb's leisure demand curve. Label this line D' 0- 0 4 в 8 10 12 14 Leisure (hours) Carefully follow the instructions above, and only draw the required objects. Wage (S)
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.9P
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