Short Answer

Adjusting the Work-Leisure Model

An economic model is used to analyze an individual's daily choice between hours of work and hours of free time. The model initially assumes the individual has a total of 16 hours per day to allocate between these two activities. Now, suppose the individual moves to a new home that is much closer to their workplace, reducing their daily round-trip commute time by one hour. Explain how you would adjust the model to reflect this change and describe the effect this adjustment has on the individual's possible combinations of work and free time.

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Updated 2025-09-22

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