Answer: U ( N , 4 ) = NRY. N: no, 1 hours of leisure parday y: spending on Purchased goods Now, Total Spending ( 4) = wage x Tome Labour hours supplied lie , Y = w ( 24 - N ) ( or) WN + Y = 24W/ - Budget constraint case I when w = 30 : Budget constraint : 30 N + Y - 720 at equilibrium MRS = slope of Budget line. - MUN - W MUy 1 ONY W 4 = WN M2 ( or) 24 30 N 4= 15 N - equilibrium condition @ w= 30 substituting His in Budget constraint, 45N = 720 N = 16/ y = 24 2 - And 13 and total labour supplied ? = 8 hours ( 24 - N )