Long-run effect of this proposal

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Q1. At a university faculty meeting in 2000, a proposal was made to increase the housing benefits for new faculty to keep pace with the high cost of housing. What will likely be the long-run effect of this proposal?

Q2. Vanessa consumes two goods--new DVDs that cost $20 each and leisure. After allowing for sleep and personal care, she has 70 free hours each week and must split these hours between work to earn money to buy DVDs and leisure activities such as personal time or socializing with friends. Vanessa's wage is $10 per hour. By law, she can't work more than 40 hrs. every week. Also, Vanessa's grandfather gives her $100 each week to spend on consumption.

Reference no: EM137196

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