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(b) Solve for the consumer's utility maximizing hours of work h(w, 1 ) and consumption c(w, 1 , Y ). [4 marks] 1 (c) What
(b) Solve for the consumer's utility maximizing hours of work h(w, 1 ) and consumption c(w, 1 , Y ). [4 marks] 1 (c) What is the uncompensated own-price elasticity for the supply of hours of work? [3 marks] (d) What is the relationship between the uncompensated own-price elasticity of labour supply and the compensated own-price elasticity of labour supply for an individual with the utility function given in this question? [2 marks] For parts (e) - (g), assume the following: w = $80, Y = $55, 000, = 2, = 0.5 and = 1.5. (e) Calculate the revenue generated by the income tax increase. [3 marks]
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