Use the Following to Answer Questions

question 35

Multiple Choice

Use the following to answer questions :
Figure: Income and Leisure Opportunities
-(Figure: Income and Leisure Opportunities) The figure Income and Leisure Opportunities refers to Keisha when she has 100 hours per week for working or leisure.There are two time allocation lines,one for a $10 hourly wage rate and the other for a $20 hourly wage rate.Keisha's optimal choice is point A when the wage is $10,and her optimal choice is point C when the wage is $20.As the amount she earns increases from $10 to $20 per hour,Keisha will work _____ hours because of the income effect.

• A) 10 fewer
• B) 15 more
• C) 25 fewer
• D) 50 more

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Definitions:

Most Elastic

Refers to the responsiveness of the demand or supply of a good or service to changes in its price, with the most elastic being the most sensitive to price changes.

Supply Least Elastic

Characterizes goods or services for which supply does not significantly change in response to price changes, often due to limitations in production capacity or availability of resources.

Supply Curve

is a graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Titleist Golf Balls

A brand of golf balls known for their performance and commonly used in professional golf.