Question

Suppose that Lizzie has a toddler (Benjy). Benjy is a "busy" boy and Lizzie is uncomfortable having others (relatives, babysitters, etc.) care for Benjy. Characterize graphically Lizzie's current indifference curves (income on the vertical axis and household time on the horizontal axis). As Benjy gets older, what, if anything will happen to Lizzie's indifference curves? What are the implications for Lizzie's labor supply?

Answer 1

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