Question 2. Labor supply (3 points) Consider Noah's preferences for leisure (Z) and other goods (C), U(Z, C) = VZ + VC. The associated marginal utilities are MUz = 2/ and MUc = 210. Suppose that Pc = 1 and the wage rate is w. Noah has no non-labor income and has at most 24 hours to divide between labor and leisure time. 1. Are Noah's preferences quasi-linear? 2. Is Noah's supply of labor backward bending? Detail your work and illustrate graphically. Question 2. Labor supply (3 points) Consider Raymond's preferences for leisure (Z) and other goods (C), U(Z, C) = C+2VZ. The associated marginal utilities are MUc = 1 and MUz = #7. Suppose that Pc = 1 and the wage rate is w. Raymond has no non-labor income and has at most 24 hours to divide between labor and leisure time. 1. Are Raymond's preferences quasi-linear? 2. Show how the number of units of leisure Raymond chooses depends on the wage rate. Detail your work and illustrate graphically. 3. How does Raymond's labor income depend on the wage rate? 4. Does Raymond work more when the wage rate rises? 5. Suppose that Raymond has non-labor income equal to A > 0. How would, if at all, your answers to questions b), c) and d) change