Use the Following to Answer Questions

question 259

Multiple Choice

Use the following to answer questions:
Figure: Davina's Labor Supply Choice
-(Figure: Davina's Labor Supply Choice) The figure Davina's Labor Supply Choice shows Davina's time allocation budget line when her hourly wage is $10 or $15 and she has 80 hours to allocate between labor and leisure; it also shows two of her indifference curves for income and leisure. When Davina earns $10 per hour, she works _____ hours and enjoys _____ hours of leisure.

• A) 20; 60
• B) 30; 50
• C) 40; 40
• D) 50; 30