Answer to Question #135214 in Microeconomics for asad

Question

Ramsha is trying to determine her consumption possibilities if she works as a Research Assistant (RA). If Ramsha

works 10 hours per week, she can spend Rs. 5000 on all other expenditures. Her total time endowment which

she can allocate between working as a RA and leisure time is 20 hours per week.

2a. Ramsha’s friend remarks that Ramsha is willing to trade an extra hour of leisure for Rs. 500 worth of

consumption on all other goods? Explain whether this is a correct observation. [ 3 points]

2b. Write down Ramsha’s consumption choice set. [2 points]

2c. Suppose Ramsha learns that she will get paid half the rate for any work exceeding 10 hours per week. Draw a

labelled graph showing her new choice set, showing the intercepts and slope of the budget constraint. [5 points]

Answer 1

Dear asad, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order