Draw income-leisure budget lines for the custodial parents


Suppose that at this time in the nation of Economia when families split up there are no required child support payments. The legislature is considering a plan where the noncustodial parent must pay the custodial parent 20 percent of his/her income for child support. In this country, everyone can earn $10 per hour and work as much as they want up to 2,000 hours per year.

a. Draw the income-leisure budget lines for the custodial and noncustodial parents before the policy is enacted - two separate graphs.

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Microeconomics: Draw income-leisure budget lines for the custodial parents
Reference No:- TGS069000

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