URGENT
Question Jack and Jill are a dual-career couple. They have two children, Lily and Noah. Lily is 12 years old, and Noah is 10 years old. Suppose their family receive life satisfactory through purchased goods and services and home production. Denote their household utility as U=f(Y,H), where Y is income derived from labor market work plus non-labor income (V), and H is time spent on household production activities, such as cooking and cleaning. a) Assume Jack and Jill both conduct market and household production activities, but with different preferences. Jack prefers market work and Jill prefers household work. Construct a proper diagram to describe Jack and Jill's preferences and explain why. (5 Marks) b) Consider the household's utility as a whole and suppose both Jack and Jill decide to work more in the labor market. The extra market work provides the family with a higher income. Draw a diagram to explain how this changes the household utility. What implication can be derived from this analysis? (5 Marks) c) It says that "Steeper budget constraint while holding income constant will tend to increase the desirability of increased market work." Draw a diagram to explain how this works. What implication can be derived from this analysis? (5 Marks) d) Describe the household utility in a different form: U=u(lJack,lJill,lLily,lNoah;C), where l is leisure time of the family members and C is household consumption. Jack and Jill each has total time, T, for both leisure and market work (h). Their wage rates are different and can be denoted as wJack and wJill, respectively. Derive the household's budget constraint in terms of l and T. (Recall: V is the nonlabor income.) (5 Marks) Question Jack and Jill are a dual-career couple. They have two children, Lily and Noah. Lily is 12 years old, and Noah is 10 years old. Suppose their family receive life satisfactory through purchased goods and services and home production. Denote their household utility as U=f(Y,H), where Y is income derived from labor market work plus non-labor income (V), and H is time spent on household production activities, such as cooking and cleaning. a) Assume Jack and Jill both conduct market and household production activities, but with different preferences. Jack prefers market work and Jill prefers household work. Construct a proper diagram to describe Jack and Jill's preferences and explain why. (5 Marks) b) Consider the household's utility as a whole and suppose both Jack and Jill decide to work more in the labor market. The extra market work provides the family with a higher income. Draw a diagram to explain how this changes the household utility. What implication can be derived from this analysis? (5 Marks) c) It says that "Steeper budget constraint while holding income constant will tend to increase the desirability of increased market work." Draw a diagram to explain how this works. What implication can be derived from this analysis? (5 Marks) d) Describe the household utility in a different form: U=u(lJack,lJill,lLily,lNoah;C), where l is leisure time of the family members and C is household consumption. Jack and Jill each has total time, T, for both leisure and market work (h). Their wage rates are different and can be denoted as wJack and wJill, respectively. Derive the household's budget constraint in terms of l and T. (Recall: V is the nonlabor income.)
