Within the context of the basic labour-leisure choice model and using the appropriate diagram(s) and the concepts of substitution and income

effects, describe how an individuals choice between labour (supply) and leisure (demand) is determined.

Within the context of this (basic labour-leisure choice) model, is labour supply an increasing function of the wage rate? Explain answer.

Define and describe the concept of the elasticity of substitution and discuss briefly its possible usefulness from an economics policy perspective.