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If Terry's wage rate is w, then the income he earns from working is (24 - 1)w. Since Py = 1, the number of units

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If Terry's wage rate is w, then the income he earns from working is (24 - 1)w. Since Py = 1, the number of units of other goods he purchases is Y = (24 - L)w. Now at an optimal bundle, Terry's MRSzy must equal the price ratio w/Py = w. Therefore, the Y tangency condition tells us that = w. The two conditions imply w(1+ 1) = (24-I)w. This 1+1 means that the optimal amount of leisure is _ = 11.5. You can see that this does not depend on the wage rate

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