3. Analytic Question on Consumption and Labor decisions during the Pandemic (30 Points). In this question we will study how workers change their labor supply. Imagine there is a consumer/worker with preference over consumption 0 and leisure 6 given by the equation below: U(C, E) = log(C] + log\") 1. (2 points)[easy] Assume the consumer faces wage to and consumption prices P. She also has one unit of available time to spend worldng or resting. Solve for the consumer problem by choosing hours worked and consumption. Compute the elasticity of consumption with respect to real wages. 2. (3 points)[easy] Now assume there is a shopping spree in the economy, wherein the consumer receives more utility from consumption. We model this by changing the preferences to: U(C, l] : rplog(C) +10g[f) with (p > 1. Solve for the hours worked and consumption under this new assumption. Compare your answer with the previous part (where cp = 1). Does the consumer wants to work more or less? 3. (5 points)[moderate] The gOvernment fears that a virus will spread in the population, so it decides to limit the number of hours the consumer can work. We model this by assuming that the maximum hours worked can be C, with [l