Untitled

import matplotlib.pyplot as plt
import numpy as np

# Leisure hours range from 0 to 24
L = np.linspace(0, 24, 100)

# Calculate income based on leisure hours
I = 360 - 15 * L

# Create the plot
plt.figure(figsize=(10, 6))

# Opportunity Set
plt.plot(L, I, label='Opportunity Set', color='blue')
plt.fill_between(L, I, color='lightblue', alpha=0.5)

# MRS line (willing to give up $11 for leisure)
MRS_income = np.linspace(0, 360, 100)
MRS_leisure = (360 - MRS_income) / 15  # Inverse of the income equation

plt.plot(MRS_leisure, MRS_income, label='MRS (Income given up for Leisure)', color='red', linestyle='--')

# Axes settings
plt.xlim(0, 24)
plt.ylim(0, 360)
plt.title('Opportunity Set: Leisure vs. Income with MRS')
plt.xlabel('Leisure Hours (L)')
plt.ylabel('Income (I in $)')
plt.axhline(0, color='black', lw=0.5, ls='--')
plt.axvline(0, color='black', lw=0.5, ls='--')
plt.grid()
plt.legend()
plt.show()