Vanessa consumes two goods–new DVDs that cost $20 each and leisure. After allowing for sleep and personal care, she has 70 free hours each week and must split these hours between work to earn money to buy DVDs and leisure activities such as personal time or socializing with friends. Vanessa’s wage is $10 per hour. By law, she cannot work more than 40 hours per week. Also, Vanessa’s grandfather gives her $100 each week to spend on consumption.
This problem is different from other problems you have seen. Because of the restrictions on her ability to work and because of the gift of income from her grandfather, Vanessa’s budget line does not intersect either the vertical or horizontal axes.
Plot Vanessa’s budget line by clicking on the two endpoints. The data-plotting tool will automatically connect the points with a line.