Scenario 21-2 Aliyah Has Recently Graduated from College with a Degree in Degree

question 30

Multiple Choice

Scenario 21-2
Aliyah has recently graduated from college with a degree in journalism and economics. She has decided to pursue a career as a freelance journalist writing for business newspapers and magazines. Aliyah is typically awake for 119 hours each week (she sleeps an average of seven hours each day) . For each hour Aliyah spends writing, she can earn $75. Aliyah is such a good writer that she can get paid for as many hours of writing as she chooses to work.
-Refer to Scenario 21-2. If Aliyah's wage increases to $85 per hour of writing, which of the following points would fall on her budget constraint?

• A)90 hours of leisure, $2,665 of consumption
• B)75 hours of leisure, $3,605 of consumption
• C)85 hours of leisure, $2,890 of consumption
• D)80 hours of leisure, $3,515 of consumption

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given period.

Price Change

A variation in the cost of goods or services over time, either increasing or decreasing based on market conditions.

Price Elasticity

Price elasticity measures how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified period.