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Considerautilityfunction: U(c,l)=(1)log(c)+log(l),where>0. 1 (a)Suppose that the consumer has one unit of time, w = 0.75, = 0.8, and T = 1.0. Determine the consumer's optimal
- Considerautilityfunction: U(c,l)=(1)log(c)+log(l),where>0.
1
- (a)Suppose that the consumer has one unit of time, w = 0.75, = 0.8, and T = 1.0. Determine the consumer's optimal choice of consumption and leisure, and show this in a diagram.
- (b)Now suppose that wage double, i.e. w = 1.5. Again, determine the consumer's optimal choice of consumption and leisure.
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