Question

a consumer faces a tradeoff between labor (????) and leisure (????). she consumes a composite good (????). when the consumer works, she earns an hourly wage of $17.00, and she spends a maximum of 24 hours on labor and leisure, but she chooses to work 6.00 hours. whatever time she does not spend working, she spends on leisure. she starts with an initial endowment of 18.00 units of the composite good, which she can buy and sell freely at a market price of $11.00.

Answer 1

Trade-off

A trade-off is a situational decision in which one quality, quantity, or feature of a set or design is reduced or lost in exchange for gains in other areas. A tradeoff occurs when one thing increases while another must decline.

What is consumer's real wage?

Real earnings are salaries that have been factoring in inflation, or wages in perspective of the amount of services and goods that may be purchased.

Main Content

$606

Given the answers to the question, the complete or implicit income of the consumer would be determined as follows:

When the customer works, she earns an hourly wage of $17.00, therefore when she works for 24 hours, she will earn:

=$17$\times$24

=$408

Also, when the customer  sells all the 17 units of the composite good, she will earn:

=$11$\times$18

=$198

Therefore, the customer's full income would be:

=$408+$198

=$606

To learn more about Trade-off

brainly.com/question/7072776

#SPJ4