Currently you work for 40 hours per week at the wage rate of 20 an hour. Your free hours are defined as the number of hours not spent in work per week, which in this case is24 hours \times 7 days − 40 hours = 128$ hours per week. Suppose now that your wage rate has increased by 25%. If you are happy
Four farmers are deciding whether to contribute to the maintenance of an irrigation project. For each farmer, the cost of contributing to the project is 10. But when any one farmer contributes, all four of them will benefit from an increase in their crop yields, in particular each gains additional8.
Let's suppose we observe two competitors in the automobile industry, i.e. BMW and Mercedes. All else equal, if Mercedes reduces the price of its cars, we should expect that
