Valuation of Free Time with Parallel Preferences
Imagine an individual whose preferences for 'consumption goods' (measured on the vertical axis) and 'hours of free time' (measured on the horizontal axis) are represented by a set of parallel indifference curves. Explain why, if this individual has 18 hours of free time, their willingness to trade consumption goods for an extra hour of free time is the same whether they have 50 units of consumption goods or 100 units of consumption goods.
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Valuation of Free Time with Parallel Preferences