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1. Suppose a consumer's preference over consumption (C) and leisure (1) can be described by a utility function: U (1.c) = Inl+c. Her budget constraint

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1. Suppose a consumer's preference over consumption (C) and leisure (1) can be described by a utility function: U (1.c) = Inl+c. Her budget constraint can be written as: c=E+w(-1). All notations have the same interpretation as in my lecture notes, Section 13E.1. a. (3 points) Solve her demand for leisure. b. (2 points) How does her labor supply decision depend on the wage rate w

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