Saima works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for 100 hours a week. Also suppose that part of this time she can spend on earning money doing this job and using it for her consumption, and the rest of the time she can spend on her leisure not earning money. At first she earns Rs.500 for every hour she works. Draw a figure showing Saima’s budget constraint, her indifference curve for consumption and leisure and her optimum.

Saima works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for 100 hours a week. Also suppose that part of this time she can spend on earning money doing this job and using it for her consumption, and the rest of the time she can spend on her leisure not earning money. At first she earns Rs.500 for every hour she works. Draw a figure showing Saima’s budget constraint, her indifference curve for consumption and leisure and her optimum.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Consumer Choice Theory

Section6.A: Indifference Curve Analysis

Problem 1SQP

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