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a. (5 points) Mary can work all she wants (up to 24 hours per day!) at a wage rate of w per hour. Her utility
a. (5 points) Mary can work all she wants (up to 24 hours per day!) at a wage rate of w per hour. Her utility function is U (I, H) = IaHb, where I is her income, H is the number of hours she is not working (her leisure) and a and b are parameters. Find Mary's supply curve of labor. b. (5 points) Suppose an individual is endowed with a total amount of hours, 2000, that can be allocated towards working at wage w = 10 or can be taken as leisure, L. The income from working is used to purchase food, F, at price pF = 1. Write down the individual's budget constraint. What is full income? Suppose utility is given by U = 2111 L + In F. What is the utility maximizing level of food and leisure
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