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In: Economics

In his current job, Jake can work as many hours per day as he chooses and...

In his current job, Jake can work as many hours per day as he chooses and is paid $10 per hours. Faced with this wage schedule, he chooses to work 12 hours per day. A law has just been passed requiring employers to pay double wages for any hours in excess of 8 hours. True/False: Assuming that leisure is a normal good for Jake, he will certainly work more than 12 hours per day. With the use of an appropriate diagram, explain your answer.

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Rahul Sunny answered 1 year ago
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