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Consider a person who like consumption (C) and dislikes labor (N) in this way: U = ln(C) - N This is a one-period model of

Consider a person who like consumption (C) and dislikes labor (N) in this way:

U = ln(C) - N

This is a one-period model of course.

The person gets to consume by earning wages and by getting a "national dividend" (D) from the government. To keep it simple, we'll assume that one hour of work yields an one extra unit of the consumption good.

C = N + D

This person maximizes utility subject to the above budget constraint.

Question: For this person, if the national dividend (D) rises by one unit, how much does total consumption (C) change as a result? In other words, what is dC*/dD for this person?

Answer with a number. If you think dC*/dD is 7, write 7.

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