Question
A Robinson consumer has an endowment of Q hours of leisure L and 0 units of housing H . His utility function is U(H,L)=20ln(H)+L .
A Robinson consumer has an endowment ofQhours of leisureLand 0 units of housingH. His utility function is U(H,L)=20ln(H)+L.He owns a firm that converts leisure into housing according to the production functionH=2L
a) let Q=10, calculate the equilibrium price of housing in terms of labour
b) assume Q increases above 10, what is the largest house Robinson will buy?
Please solve both parts with proper explanation. Need it asap, thanks.
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
