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Steve Slacker is age 25, has an MBA degree, but is not working. Instead he is living at a major ski area, using the $2,000 per week he gets from his wealthy family. The family, however, seeing that Steve is becoming a permanent slacker, ends his weekly payment. As a result, Steve chooses to take a job that pays $1,000 a week for 40 hours or work.
a) Construct a single income-leisure choice graph to show Steve’s situation before and after his parent’s decision.
b) Briefly summarize the outcome as to hours of work, total weekly income, and Steve’s total utility.
q1. jeremy derives all of his utility from consuming milk shakes he devotes hi entire 20 allowance to milk shakes each
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