Problem
Teenagers under age 18 in New York State are prohibited from working more than 8 hours a day, except if they work as golf caddies, babysitters, or farmworkers. Consider a 16-year-old whose primary household work in the summer is studying for college entrance exams and practicing a musical instrument but who also has two options for paid work. She can work for $6 per hour with a catering service (limited to 8 hours per day) or work for $5 per hour as a babysitter (with no limitations on hours worked).
a. First, draw the daily budget constraints for each of her paid-work options (assume she can work either for the catering service or as a babysitter but cannot do both).
b. Next, analyze the possible labor supply decisions this 16-year-old can make, making special reference to the effects of the state law restricting most paid work to 8 hours a day.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.