Mr Cog in Problem 7 Has 18 Hours a Day

question 14

Multiple Choice

Mr. Cog in Problem 7 has 18 hours a day to divide between labor and leisure. If he has 17 dollars of nonlabor income per day and gets a wage rate of 13 dollars per hour when he works, his budget equation, expressing combinations of consumption and leisure that he can afford to have, can be written as

• A) R += 329.
• B) 13R + C = 17.
• C) C = 251 + 13R.
• D) 13R + C = 251.
• E) C = 302 + 13R.

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Definitions:

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product.

Demand Decrease

A situation where the quantity of a product or service desired by buyers decreases, usually due to changes in consumer preferences, incomes, or prices of related goods.

Demand Equation

A mathematical representation expressing the relationship between the quantity of a good demanded and its price, along with other factors affecting demand.

Supply Equation

A mathematical expression that represents the relationship between the quantity of a good that producers are willing to sell and factors that affect this quantity like the price of the good.