Consider a consumer who is endowed with h = 24. The consumer faces a real wage rate w = 4, dividends 7 =T and taxes T'= 3. MRS is given to be -% (a) Write down the formulae for the budget and the time constraints. (b) What is the price of leisure here? (c (d ) Draw the budget constraint. ) Redraw the budget constraint when w goes up to 5. Show (no need to calculate) the income and the substitution effects on the graph. (e) Suppose w is again equal to 4. Redraw the budget constraint when T goes down to 2