3A. (30 pts) A student dedicates 6 hours a day to classes and study and 8 hours to rest. This leaves 10 hours a day for leisure that the student is thinking of partially reducing by taking a part-time job. The student considers leisure and consumption as imperfect substitutes and her preferences are given by a utility function U = U(Y, N ), where Y is consumption and NV is the number of hoggs of leisure. Hourly wage is W and the price of consumption is normalized to 1. a. (5 pts) Write and draw the budget restriction of the student calling H the hours of work, taking into account that H = (10 - N ), and that she already has Y per day coming from her parents. Draw. Y=Y+wH=Y +w(10 _N) b. (10 pts) Represent a hypothetical choice of N, H and Y. _ Represent a point of tangency of the budget line with an in- difference curve. c. (10 pts) Suppose that her parents withdraw the daily subsidy of $Y and that leisure is a normal good (the greater income the greater the demand for leisure). Draw the income effect on IV and H and explain. Do we know if she is going to work more or less? The budget line experiments a paralel downward displacement and we have a new equilibrium. She is going to work more (she is going to demand less leisure) because leisure is a normal good. e. (5 pts) Suppose that now the possibility of a job with an hourly wage of $3w appears. How will this change the choice of N and H relative to ? [ustrate