Question 1 Johnny consumes two goods, cookies C and freedom F. He has 24 hours in a day, which he divides between freedom and work. He cannot work less than zero or more than 24 hours. If he works, he gets paid a wage of $1 per hour. Thus the opportunity cost of freedom is also $1 per hour. He also has an independent income A. He use his total income (A plus his wage income) to buy cookies. Cookies cost $p each. Johnny's utility function is U(C, F) = 02 + F1 (a) Write down Johnny's maximisation problem. (b) Solve the maximisation problem to find (i) Johnny's demand function for cookies Ca (in terms of p and A), and (ii) his supply of labour Ls (also in terms of p and A). (c) Suppose p = 1 and A = 26. (i) How many hours would Johnny want to work? (ii) How many hours would he actually work? Explain