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Suppose that working condition X is an undesirable working condition. Justin and Jessica both have ...

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Suppose that working condition X is an undesirable working condition. Justin and Jessica both have ...

Suppose that working condition X is an undesirable working condition. Justin and Jessica both have distaste for working condition X, but Justin's aversion to working condition X is greater than Jessica's aversion. Draw a graph with a representative indifference curve for both Justin and Jessica, with the wage rate on the vertical axis and the level of working condition X on the horizontal axis. Explain why the indifference curves look as you have drawn them.

Textbook

Modern Labor Economics: Theory and Public Policy

Edition: 12^th

Authors: Ehrenberg, Smith

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