1. Rey is working at a part-time job while going to college. Out of the 80 hours per week that are available for work, Rey can work up to 30 hours per week in the school bookstore and make$20per hour. A. Draw a time allocation budget to reflect the choices available to Rey. Indicate with an indifference curve the choice to work 30 hours per week. B. The government has now imposed a tax on weekly income, although the first$100of income is tax-exempt. Show how this changes the time allocation budget, and use the indifference curve you drew for part a to indicate how this tax might impact the choice of how many hours to work. C. When Rey finishes college, what is likely to be the change in the work-leisure tradeoff?
