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2. (20 points) We have described the slope of an indifference curve as the marginal rate of sub- stitution between consumption and leisure. Imagining that
2. (20 points) We have described the slope of an indifference curve as the marginal rate of sub- stitution between consumption and leisure. Imagining that c is plotted on the vertical axis and l = 1 n is plotted on the horizontal axis, a. Compute the marginal rate of substitution for the following utility function 1 (101\" la u(c,I)1_U(c1W) ,7>0,J>0,9>0 b. Derive the consumer's optimal choice given the budget constraint Pc = (1 t)Wn. Does consumption affect labor supply? Explain your
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