\fFind the optimal quantity of L, denoted by L', such as the consumer obtains utility U* when the cost of leisure is w(1-t). 2. Find optimal choices with tax from the minimization problem: U * L' = VW(1 -T) C' = U* VW(1-T) U * N' = 12 - VW(1-T)(D=c+w(1-T)L+ A[U * -VcVL] ap VI =0:1=1 ac 2vc ap =0: w(1-T) = 2 vo aL 2VL = 0:U* = VcVL