Question

57. Aleah is an electrical engineer. Her wage increased from $30 per hour to $40 per hour. She can work up to 50 hours each week. The table below shows her utility from different levels of leisure and income. If Aleah decreased her hours of work from 30 to 20 hours per week before her raise, the marginal utility loss from having less income is:

Hours of Leisure	Total Utility from Leisure	Income	Total Utility from Income
0	0	0	0
10	29	300	42
20	54	400	74
30	73	600	96
40	86	800	113
50	92	900	119
		1200	122
		1500	124
		1600	126
		2000	127

A. 23

B. 56

C. 19

D. 100

Answer: A Reference:

Answer 1

If she has decreased her hours of work from 30 to 20 hours per week, then her salary is reduced from 30*30 = 900 to 20*30 = 600. This represents a utility loss from 119 utils to 96 utils. Hence the marginal utility loss from having less income is 119 - 96 = 23 utils.

Select 23 utils. Option A.