Make an indifference curve and budget line to analyze the behavior the choice of leisure time and hours of work of employees who are paid:
a) An hourly rate of $4 per hour. Explain.
b) A fixed hourly wage of $4 per hour, plus an overtime bonus of $4 for every hour worked in excess of eight hours. Explain.
c) A fixed salary of $40 per day, plus $4 for each hour worked. Explain.