7. Consider a representative consumer that has preferences over bundles of consumption . ' . 1 . ' ' . ' goods c1 and leisure If. The consumer s preferences satisfy the properties: more is pre- ferred to less; preference for diversity; normality. The consumer is endowed with an endowment of total hours h. Let the consumer's real wage per hour worked in terms of the consumption good be it). Real firm profitsj which are distributed to consumers as dividends, are denoted H. The real lumpsum taxes paid by consumers to the government are T. Assume that H > T. {a} Derive the consumer's budget constraint and draw it on a carefully labeled dia gram. Show the optimal choice for the representative consumer. Explain what the condition that holds at the optimum is. (b) Suppose now that in addition the government imposes a proportional income tax T