What Is the Budget Line for Consumption (C) and Leisure

question 22

Multiple Choice

What is the budget line for consumption (C) and leisure (L) if a person faces a constant wage of $10 per hour, there are 112 hours in the week to work, and she receives nonlabor income of $220 per week?

• A) C = 1340
• B) C + 10L = 1340
• C) L = 10C + 220
• D) C − 10L = 900
• E) 10C − L = 900

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