u = lnc + ln(24 - l)

Where u , c and l stands for utility, consumption and labour. Again, assume output or production in the economy is dened by the standard

Cobb-Douglas production function. Capital is given as constant, therefore, output depends only on labour.

1. Graph the level curves: u1 = 3.81; u2 = 4:0, and u3 = 5:0; with c as the vertical axis variable and l, the horizontal axis variable. For each curve, assume that l = 8 and and the associated values of c consistent with the utility level. 18 marks
2. Graph the curve c = l separately and then together with the level curves in Q1, 12 marks
3. Graph c = l, c=2l , c= 3l, c=4l. Find the equilibrium c,l and u, for when c=3l and find the equilibrium utility level curves. 16 marks