Ms Katrina has eighteen hours available per day to allocate between Leisure and work. She has N$100 non - labour income and her wage rate per hour is N$25.00. a) Contract budget constraint equation b) Draw a budget line and make sure to include intercepts c) Calculate the slope of the budget line d) If Ms Katrina's utility function is , what combination of Leisure hour and income that will help to maximize her utility?
Ms Katrina has eighteen hours available per day to allocate between Leisure and work. She has N$100 non - labour income and her wage rate per hour is N$25.00. a) Contract budget constraint equation b) Draw a budget line and make sure to include intercepts c) Calculate the slope of the budget line d) If Ms Katrina's utility function is , what combination of Leisure hour and income that will help to maximize her utility?
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.13P
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Ms Katrina has eighteen hours available per day to allocate between Leisure and work. She has N$100 non - labour income and her wage rate per hour is N$25.00.
a) Contract budget constraint equation
b) Draw a budget line and make sure to include intercepts c) Calculate the slope of the budget line d) If Ms Katrina's utility function is , what combination of Leisure hour and income that will help to maximize her utility?
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