ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Joko is a university student, working part-time at copying service center for Rp. 8/hour with zero non-labor income.
(a) Graph Joko’s budget constraint and label the utility-maximing outcome if Joko opts to work 40 hours per week.
(b) Suppose Joko’s parents decide to send him Rp.100/week. Graph Joko’s new budget constraint.
(c) How many hours will Joko now have to work to maintain the same weekly income as in (a)?
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