Question Details

(Solved) EXERCISE 2 A consumer may consume food a: and hours of leisure time h. The price of one unit of food is $1. Initially, the consumer has no money and...


EXERCISE 2 A consumer may consume food a: and hours of leisure time h. The price of one unit of food is $1. Initially, the consumer has no money and 24 hours of spare time that she may devote either to work, or to leisure. The consumer earns wage rate 3 per hour for the first five hours of work, and 3’ per hour for additional overtime hours. She also faces a tax rate of t percent on labor income earned above amount M. Draw the consumer’s budget set for the following two cases of parameter values: 1.8 = $6, 8’ = $8, 75 = 30%, M = $70; 2. s = $5, 8’ = $7, 75 = 40%, M = $20. Which bundle(s) correspond to kink(s) of the consumer budget constraint? EXERCISE 3 You have an income of $100 to spend on two commodities. The price of Commodity 1 is constant at $5 per unit. The price of Commodity 2 is $2 per unit if you buy less than 20 units. However, there is a penalty: the price of any additional unit of Commodity 2 in excess of 20 units raises to $3 per unit. Draw your budget set. At which bundle(s) you budget constraint has kink(s)?
This text was automatically generated from the attachment. Please refer to the attachment to view this question.
This question was created from hmk1.pdf https://www.coursehero.com/file/14167707/hmk1pdf/?focusQaId=10226221

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $15

Solution~000200158575.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now