You are willing to work up to 80 hours a week. You make $10(5 + 1) an hour.

You are willing to work up to 80 hours a week. You make $10(5 + 1) an hour.

1. Define and graph your budget set in terms of leisure (equal to non–worked hours) -Good 1- and ”money spent on every other good” -Good 2-.

2. Assume that above 40 hours per week you get an overtime hourly rate of$16(5 + 1) per hour. Define and graph the new budget set.

3. Assume that in addition to the over-time rate you also have $200(5 + 1) in your checking account. Define and graph the new budget set.

Budget set in terms of leisureThe actual option of income and leisure to each person depends on what is themarket rate of exchange between the wage rate per hour of work and it is worthnoting...