Show how his budget constraint changes

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Originally when he could work as many hours as he wanted at a wage w, Roy chose to work seven hours a day. The employer now offers him w for the first 8 hours in a day and an over-time wage of 1.5w for every hour he works beyond a minimum of 8 hours. Show how his budget constraint changes. Will he necessarily choose to work more than seven hours in a day? Would your answer be different if he originally chose to work 8 hours?

Reference no: EM131000374

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