Hello,

Could you please help me answer this question?

Eva has preferences for consumption, C, and leisure, L. Her preferences are represented by the following utility function: U(C, L) = C'5L'5. The unit price of consumption is 1, and the hourly wage rate is w. Assume that the total amount of time that can be used for either market work or leisure is T. (a) Derive an expression for Eva's labour supply. (b) The government contemplates introducing a proportional tax, 1:, on income from market work. Derive an expression for Eva's labour supply in this case. How will this change her labour supply? (c) The government also consider introducing a lump sum transfer, 5, to everyone. How will this change Eva's labour supply