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The questions are in the screen shot. Sam & Barb derive utility from leisure (N) , in hours, and the amount of the composite good

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Sam & Barb derive utility from leisure (N) , in hours, and the amount of the composite good [ G) they consume. In order to maximize utility, they need to allocate the 24 hours of their days between taking leisure and working for an hourly wage rate [w ). They have N 0 non-wage income. Assume the price of the composite good is $1 / unit of G . The following table summarizes their choices under different wage rates: w [in $ 1 hour I Sam's N [in hours) Barb's N (in hoursl 8 16 14- 9 15 14- 10 14 15 11 14 16 On well-labeled indifference curve diagrams, show each person's optimal choices. Assume each has strictly monotonic and strictly convex preferences for leisure and the composite good. Further assume they both view both goods as normal. Comment on the relative magnitudes of the substitution and income effects of each wage change for each person. Now, construct a labor supply curve for each person (separate diagrams of course]. Does each person's labor supply curve have a perfectly inelastic portion here? Why? Explain. Does each person's labor supply curve have both an upward sloping and a downward-sloping portion here? Why? Explain

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