Sameena works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for 110 hours a week. Also suppose that part of this time she can spend on earning money doing this job and using it for her consumption, and the rest of the time she can spend on her leisure not earning money. At first she earns Rs.550 for every hour she works. Draw a figure showing Saima’s budget constraint, her indifference curve for consumption and leisure and her optimum.

Sameena works as a free-lance worker at a software house in Rawalpindi. Suppose she keeps awake for 110 hours a week. Also suppose that part of this time she can spend on earning money doing this job and using it for her consumption, and the rest of the time she can spend on her leisure not earning money. At first she earns Rs.550 for every hour she works. Draw a figure showing Saima’s budget constraint, her indifference curve for consumption and leisure and her optimum.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section7.1: Demand

Problem 5R

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