An individual has $10,000 of non-wage income in his savings account. He earns $200 per hour, and can choose to work up to 24 hours per day.
a. What does his budget constraint look like in terms of consumption (C) and leisure (l)?
b. The individual chooses to buy $12,000 worth of consumption goods while working 12 hours. Draw this and label it as point A on the budget constraint.
c. What is wrong with point A?