Suppose Tammy has a utility function U(C, L) = 2 + VC2 + 12, where C is con- sumption and L is leisure. Tammy has
Suppose Tammy has a utility function U(C, L) = 2 + VC2 + 12, where C is con- sumption and L is leisure. Tammy has a total of T hours for work and leisure. The wage rate is w and Tammy has no non-labor income. (a) Express Tammy's utility maximizing choice of work hours in terms of w and T. (b) If wage rate w decreases, would Tammy's labor supply increase, decrease, or remain unchanged? Explain why
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