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Lisa can gain 6 dollars per hour if she goes to work. She has 16 hours...

Lisa can gain 6 dollars per hour if she goes to work. She has 16 hours of time in a day which can be spent as leisure or labor. If she decides to go to work, she has to get on to the Ferry which will cost her 8 dollars per day. Lisa can gain 20 dollars as non-labor income daily

  1. What is the graphic of Lisa’s consumption-leisure budget constraint for a day(draw budget set).

b. If Lisa is not a participant of the labor force currently, what effect would it cause if the Ferry becomes free? Would that effect the budget constraint of Lisa or/and her desire to rejoin the labor force? Sketch the updated budget constraint and explain your reasoning.

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