1. Sergio derives utility from consumption and leisure U(c, /) = 3/4/1/4. The price of consumption is P. and for every hour he works he
1. Sergio derives utility from consumption and leisure U(c, /) = 3/4/1/4. The price of consumption is P. and for every hour he works he earns wage w. Sergio's total time available is 7, so that his budget constraint is: Pec = (T - 1)w. a. Show that the utility function is homothetic. b. Solve for optimal demand for consumption and leisure
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