Connect 1-semester Access Card For Microeconomics
2nd Edition
ISBN: 9780077491697
Author: Whinston, Michael, BERNHEIM, B. Douglas
Publisher: McGraw-Hill Education
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Question
Chapter 6, Problem 9P
To determine
Determine a formula for the labor supply curve.
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Students have asked these similar questions
Janie works for an accounting firm. Her wage increased from $30 per hour to $40 per hour. She can work up to 50 hours each week. The table below shows her utility from different levels of leisure and income. Before her raise, if Janie decreases her hours of work from 30 to 20 hours per week, the marginal utility gain from having more leisure is:
Hours of Leisure
Total Utility from Leisure
Income
Total Utility from Income
0
0
0
0
10
29
300
40
20
54
400
72
30
75
600
96
40
86
800
108
50
92
900
116
1200
120
1500
122
1600
124
2000
125
Question 4 options:
29
21
13
7
Suppose your only source of income is work and that you are paid $20 per hour. This determines a budget constraint. You can buy free time at the expense of your income by working less. Likewise, you can get more income at the expense of your free time by working more. Suppose that you can choose how many hours you work.
2. Calculate your weekly income if you work 40 hours per week. Now suppose that your hourly rate drops to $15 because of an economic downturn and you decide to work 43 hours a week. How much is your weekly income going to be? (Show your calculations)
Ahmed has a limited weekly income of $65, and he spends it all on cheeseburgers and J’s . Assume the price of each cheeseburger is $10 and the price of J is $5 per unit.
Chapter 6 Solutions
Connect 1-semester Access Card For Microeconomics
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- Anne has a job that requires her to travel three out of every four weeks. She has an annual travel budget and can travel either by train or by plane. The airline on which she typically flies das a frequent-travel program that reduces the cose of her tickets according to the number of miles she has flown in a given year. When she reaches 25,000 miles, the airline will reduce the price of her tickects by 25 percent for the remainder of the year. when she reaches 50,000 miles, the airline will reduce the price by 50 percent for the remainder of ther year. Graph Anne's budget line with train miles on the vertical axis and plan miles on the horizontal axis Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardTerry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 5 45 35 10 34 10 90 59 15 48 15 135 77 20 56 20 180 86 25 60 25 225 92 30 65 30 270 98 35 69 35 315 103 40 72 40 360 107 1. Fill in the Marginal Utility columns above. 2. What will be Terry’s total utility from both leisure and income when working 20 hours per week? Is this the correct answer: 56+86=142arrow_forwardTerry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 0 5 45 35 0 10 34 3.2 10 90 59 4.8 15 48 2.8 15 135 77 3.6 20 56 1.6 20 180 86 1.8 25 60 0.8 25 225 92 1.2 30 65 1 30 270 98 1.2 35 69 0.8 35 315 103 1 40 72 0.6 40 360 107 0.8 Terry decides to decrease her work hours from 20 to 10. What would be her marginal utility gain from having additional leisure time? 0.9 What would be marginal utility loss from less income? 2.7 What will be her total utility from both leisure and income when working 10 hours per week? The required value of the…arrow_forward
- Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 0 5 45 35 0 10 34 3.2 10 90 59 4.8 15 48 2.8 15 135 77 3.6 20 56 1.6 20 180 86 1.8 25 60 0.8 25 225 92 1.2 30 65 1 30 270 98 1.2 35 69 0.8 35 315 103 1 40 72 0.6 40 360 107 0.8 Terry decides to decrease her work hours from 20 to 10. What would be her marginal utility gain from having additional leisure time? What would be marginal utility loss from less income? What will be her total utility from both leisure and income when working 10 hours per week? Does it make sense from the…arrow_forwardTerry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 0 5 45 35 0 10 34 3.2 10 90 59 0.53 15 48 2.8 15 135 77 0.4 20 56 1.6 20 180 86 0.2 25 60 0.8 25 225 92 0.13 30 65 1 30 270 98 0.13 35 69 0.8 35 315 103 0.11 40 72 0.6 40 360 107 0.03 Terry decides to increase her work hours from 20 to 25 hours per week. What would be her marginal utility loss from having less leisure time? 6 What would be her marginal utility gain from having an additional income? 13 What will be her total utility from both leisure and income when working 25 hours…arrow_forwardTerry decides to increase her work hours from 20 to 25 hour per week. 1. What would be her marginal utility loss from having less leisure time? 2. What would be her marginal utility gain from having additional income?arrow_forward
- Julie buys food and other goods. She has an income of $400 per month. The price of food is initially $1.00 per unit. It then rises to $1.20 per unit. The prices of other goods do not change. To help Julie out, her mother offers to send her a check each month to supplement her income. Julie tells her mother, “Thanks, Mom. If you would send me a check for $50 per month, I would be exactly as happy paying $1.20 per unit as I would have been paying $1.00 per unit and not receiving the $50 from you.” Which of the following statements is true? Explain. The increased price of food has:a) an income effect of +$50 per monthb) an income effect of -$50 per month c) a compensating variation of +$50 per monthd) a compensating variation of -$50 per monthe) an equivalent variation of +$50 per monthf ) an equivalent variation of -$50 per montharrow_forwardCarol and Brent are a two-person household. Carol's market hourly wage is $50, but Carol can also produce $30 of household production each hour. Brent's market hourly wage is $40, but Brent can also produce $20 of household production each hour. This household chooses work schedules to maximize utility. When it does this, which of the following cannot occur? a. Carol specializes in marketplace work, while Brent splits time between marketplace and household work. b. Brent specializes in marketplace work, while Carol splits time between marketplace and household work. c. Brent specializes in marketplace work while Carol specializes in household production. d. Both specialize in marketplace work and no one engages in household production. e. All of these can occur.arrow_forwardTerry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Refer to the attached picture for the table. 1. Fill in the Marginal Utility columns above. 2. What will be Terry’s total utility from both leisure and income when working 20 hours per week?arrow_forward
- Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $112 for the suit: Juanita makes $26 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $26 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. (look at screenshot) Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will…arrow_forwardJoseph earns $200 per week and spends his entire income on cheese which cost $5 per pound and crackers which cost $ 2 per box. Draw Josephs budget constraint. If the price of cheese increases to $8 per pound, what will happen to Josephs budget constraint?arrow_forwardPaper and pen are Complementary/Substitute goods Choose the correct option out of these twoarrow_forward
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