Consider the optimal choice problem of labor and recreation. Suppose a consumer works the first 8 hours of the day at a wage of $10, but received an overtime wage of $20 for additional time worked. Assume there is zero non-labor income, the price of the consumption good is 1. Since we are looking at how many hours this worker works in one day, it is safe to assume that T=24.
(a) Draw the budget constraint on an optimal choice diagram
(b) Draw the set of indifference curves that would make it optimal for this individual to work 4 house of overtime each day.