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4. A worker derives utility from consumption c and leisure l and chooses how many hours L to work. She faces the following budget constraint:

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4. A worker derives utility from consumption c and leisure l and chooses how many hours L to work. She faces the following budget constraint: 0 = (l T)L + v, where 0 0. The worker chooses L to maximize her utility which is determined as log(c) + 109(1). Determine optimal labour supply L. How does it depend on the tax rate 'r if v = 0? Explain the result. How does the labour supply depend on the tax rate if v > 0. (5p.)

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