Question: 3.1 Ron Chooses How Many Weeks To Work Each Year. His Time Endowment Tis 50 Weeks Per Year, Which Conveniently Lies On The Grid In The Following Figure. His Wage Rate W Is $400 Per Week, The Price Of Consumption P Is $10 Per Unit, And He Has No Nonlabor Income (I.E., Y 0) Consumption (Units/Year) 2500 2000 1500 1000 500 O 5 10 15 20 25 30 35 4045 Lere

3.1 Ron chooses how many weeks to work each year. His time endowment Tis 50 weeks per year, which conveniently lies on the grid in the following figure. His wage rate w is $400 per week, the price of consumption p is $10 per unit, and he has no nonlabor income (i.e., y 0) consumption (units/year) 2500 2000 1500 1000 500 o 5 10 15 20 25 30 35 4045 lere (weeks/year) If Ron doesnt work at all, how many units can he consume in a year? Label this point E (a)

Transcribed image text: 3.1 Ron chooses how many weeks to work each year. His time endowment Tis 50 weeks per year, which conveniently lies on the grid in the following figure. His wage rate w is $400 per week, the price of consumption p is $10 per unit, and he has no nonlabor income (i.e., y 0) consumption (units/year) 2500 2000 1500 1000 500 o 5 10 15 20 25 30 35 4045 lere (weeks/year) If Ron doesn't work at all, how many units can he consume in a year? Label this point E (a)

a) If Ron doesn't work then he can consume zero units and leisure is 50 weeks so point E touches x-axis. b) I…