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how do i solve this questions? Assume that consumers are free to decide how many hours to work. Con- sumers have the following utility: U

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how do i solve this questions?

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Assume that consumers are free to decide how many hours to work. Con- sumers have the following utility: U = U(C1, 41, C2, 12) (2) where c1, C2, l1, and 12 are consumption and leisure in the first and second period respectively. Consumers earn a wage w1, profits 71 and pay lump sum taxes , in the first period and w2, 72 and T2 respectively in the second period. They have a total h hours at their disposal for work and, and can buy or sell any amount of bonds at the same interest rate r

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