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Marty earns a wage of $15/hr He also earns $10/day in interest income from his many financial investments If Marty's total income is $100/day how many hours is he working

Marty earns a wage of $15/hr. He also earns $10/day in interest income from his many financial investments 4.a) If Marty's total income is $100/day, how many hours is he working? 4.b) The interest rate on some of Marty's accounts goes up so that now he is earning $50/day in interest income. What wil happen to Marty's reservation wage? What will happen to his hours worked? 4.c) The slope of the indifference curve that intersects Marty's new endowment point is -20. What is Marty's optimal consumption and leisure bundle?

Apr 01 2020 View more View Less

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