Income-Leisure Trade-off Analysis

A freelance graphic designer who typically works 40 hours a week for an effective rate of $25/hour ($1,000/week) lands a major client who pays them $100/hour. The new contract allows for complete flexibility in the number of hours worked per week. The designer decides to work 20 hours per week. Which of the following best explains this decision?

Analyzing Worker Choices After a Pay Raise

An independent contractor who previously earned $40 per hour and worked 40 hours a week ($1,600/week) secures a new contract that pays $160 per hour with complete flexibility over their work schedule. Match each of the contractor's potential responses to the primary motivation it demonstrates.

Evaluating Worker Responses to a Wage Increase

If a worker's hourly wage doubles and they are given full control over their work schedule, the only logical response is to work half the number of hours to maintain their previous income and maximize their free time.

An architect who typically bills for 40 hours a week at a rate of $100 per hour ($4,000/week) secures a new long-term project that pays $300 per hour. The new arrangement allows for complete flexibility in the number of hours worked each week. The architect decides to work 20 hours per week on this new project. Which of the following statements best analyzes this choice?

Recommending an Optimal Work-Leisure Strategy

A software developer works 40 hours a week at a rate of $75 per hour, earning $3,000 weekly. They are offered a new project that pays $225 per hour and allows them to set their own schedule. If the developer's primary goal is to increase their free time while maintaining their previous weekly income, approximately how many hours per week will they need to work on the new project?

Evaluating a Freelancer's Work-Life Decision