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(Solved): 5) Consider the labor-leisure model. A) On the graph below draw the constraint with wages at $10 pe ...
5) Consider the labor-leisure model. A) On the graph below draw the constraint with wages at $10 per hour B) Now draw the constraint on the graph provided when the worker starts to make overtime, a wage of $20 per hour, for any labor hours above 9 in a day. C) Draw your preferences (indifference curve) for this new wage rate that includes the possibility of overtime. D) Explain any differences in the outcomes (\# of hours working and income) with and without overtime.