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Question: a. Suppose that a worker's commute involves traveling a long distance on a highway that is about to start charging toll fees of $Y. There is no other way for the person to get to her job. What will happen to hours of work as a result of this increase in commuting costs?
b. Suppose a worker's current job is located very near her house, so that the time it takes to commute to work is essentially zero. The firm is considering a move to another town, and it will then take the worker 10 hours per week to get to and from work, regardless of how many hours the worker actually decides to work. What will happen to the worker's hours of work (defined as hours actually spent on the job) as a result of this increase in commuting costs?
c. Compare the answers in the two parts of this problem, and discuss why the difference arises.
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