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Question:For the following questions, please create separate graphs illustrating the given conditions. On each of the graphs, clearly label all intercepts and points numerically where possible. Please assume a 16-hour workday for all budget constraints.
Draw a budget constraint for Penny, who can work at her job and earn $10 per hour.
Draw a budget constraint for Penny if she receives a daily payment for $50 from a relative. She can still work at her original job if she wants to and keep the payment.
In the graph below, draw a budget constraint and utility maximizing indifference curve for Amy that meets the required conditions.
Amy’s wage rate is $20 per hour. An income replacement program exists that can provide $150 per day, but only if she is unable to work. Amy maximizes her utility by working zero hours.
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