1. Given the graph below, would Amy enter the LF? What is her reservation wage? MG) 30 Hours of NMT 15 16 2. Suppose Amy's nonlabor income increases and shifts her budget constraint to BE'. Given the graph below, what happened to Amy's reservation wage? How would Amy's work decision change? 0 Mp 16 Hours of NMT

1. Given the graph below, would Amy enter the LF? What is her reservation wage? MG) 30 Hours of NMT 15 16 2. Suppose Amy's nonlabor income increases and shifts her budget constraint to BE'. Given the graph below, what happened to Amy's reservation wage? How would Amy's work decision change? 0 Mp 16 Hours of NMT

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 9PA

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