Leandro has 16 hours per day that he can allocate to work or leisure. his job pays a wage rate of $20. leandro decides to consume 8 hours of leisure. his indifference curves have the usual shape: they slope downward, they do not cross, and they have the characteristic convex shape. (15 points)

draw leandro’s budget constraint for a typical day. then illustrate the indifference curve at his optimal choice.

now leandro’s wage rate falls to $10.

draw leandro’s new budget line.

suppose that leandro now works only 4 hours as a result of his reduced wage rate. illustrate the indifference curve at his new optimal choice.

leandro’s decision to work less as the wage rate falls is the result of a substitution effect and an income effect. which effect is stronger? explain your reasoning.

Roi analysis using dupont model. charlie? s furniture store has been in business for several years. the firm? s owners have described the store as a ? high-price, highservice? operation that provides lots of assistance to its customers. margin has averaged a relatively high 32% per year for several years, but turnover has been a relatively low 0.4 based on average total assets of $800,000. a discount furniture store is about to open in the area served by charlie? s, and management is considering lowering prices in order to compete effectively. required: a. calculate current sales and roi for charlie? s furniture store. b. assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same roi as they currently earned. c. suppose that you presented the results of your analysis in parts a and b of this problem to charlie, and he replied, ? what

What is the difference between secure bonds and naked bonds?

Which of the following best explains the purpose of protectionist trade policies such as tariffs and subsidies? a. they make sure that governments have enough money to pay for fiscal policies. b. they give foreign competitors access to new markets around the world. c. they allow producers to sell their products more cheaply than foreign competitors. d. they enable producers to purchase productive resources from everywhere in the world.