1.Ariana is a lawyer who bills $1200 per hour of work. She has 40 hours each week to devote to either work or leisure. Written in terms of leisure in hours (L) and consumption in dollars (C), Ariana's budget constraint is

a. L = 40 - C/1200

b. C + 40L = 1200

c. C + 40L = 8000

d. L = 40 - 1200C

2.Consider Ariana from the previous question. Ariana has utility over leisure (L) and consumption (C) that is given by

U = 0.1L + ln(C)

where, again, L is measured in hours and C is measured in dollars. Continue to assume that Ariana has 40 hours each week to devote to either leisure or work, and that she earns a wage of $1200 per hour for each hour that she chooses to work.

Given her budget constraint, the utility-maximizing number ofhours of workthat Ariana will choose to do each is:

(Please only enter numbers in the answer. No commas or other characters. Round your answer to 2 decimal places if necessary.)

3.Consider Ariana from questions 10 and 11. Now suppose she faces a 50% tax rate on her hourly wage. What is the utility-maximizing number of hours she will choose toworkeach week?

(Please only enter numbers in the answer. No commas or other characters. Round your answer to 2 decimal places if necessary.)

4.What is Ariana's labor supply elasticity?