What is tola opportunity cost of an extra hour of leisure

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Assignment:

A) Show Tola's trade-off between leisure and income in a budget constraint graph. Label the axis and intercepts. Write the budget constraint equation, where income depends on leisure. What is Tola's opportunity cost of an extra hour of leisure?

B) How would Tola's budget constraint change if the gets a pay cut from $35 per hour to $30 per hour? Draw Tola's original budget constraint and his new budget constraint. How did his opportunity cost of an extra hour of leisure changes?

 

 

Reference no: EM133564417

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