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In: Economics

Lisa has 168 hours per week available for leisure (R) and work (L). She can earn...

Lisa has 168 hours per week available for leisure (R) and work (L). She can earn $20 per hour and the price of consumption (C) goods is $1. Her utility function is U(R,C)=R2C

a) (3) Find Lisa's optimal choice of leisure and consumption and work.

b) (2) If Lisa in addition receives $200 per week in income from her family trust, what would her budget line look like? Draw it.

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Expert Solution

Rahul Sunny answered 2 years ago
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