s: (a) What is this consumer's budget constraint? (b) Set up the maximization problem of the consumer and write out the Lagrangian. (Or demonstrate knowledge of some other constrained optimization technique. But the Lagrangian approach is what we used in class.) (c) Find the rst order conditions. Find an expression relating the optimal amount of C to the optimal amount of l. (We sometime call this expression the Euler equation) (d) Solve for the optimal allocation of C and l, written as expressions in terms of the exogenous parameters. (That is, nd an equation with optimal consumption on one side and exogenous parameters (everything except consumption and labor) on the other side. Consumer Optimization (10 pts) Do the same for optimal leisure. C = ... l = ... HW#4 ECON 3102