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Business, 18.02.2021 21:10 laskew37221

A consumer consumes one consumption good x and hours of leisure h. The price of the consumption good is 1. The consumer earns wage rate s per hour for the first eight hours of work, and s 0 > s for additional overtime hours. He also faces a tax rate per dollar on labor income earned above amount M. Draw the budget set. Assume M < 8s, which means that the consumer does not need to work for more than eight hours to earn labor income of amount M. Draw the budget set.

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A consumer consumes one consumption good x and hours of leisure h. The price of the consumption good...
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