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2a) In the consumption/leisure model, let the consumer’s utility function be U(C,l)=C.25+l.25. Suppose Pc=$1 and w1=$10...

2a) In the consumption/leisure model, let the consumer’s utility function be U(C,l)=C.25+l.25. Suppose Pc=$1 and w1=$10 determine the optimal amount of C and L and the equation for the labor supply.

b) Suppose w2=$12 determine the new optimal C and L and determine the substitution and income effects of the price change of leisure

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A. In the consumption/leisure model, let the consumer’s utility function be U(C,l)=C.25+l.25. Suppose Pc=$1 and w1=$10...
A. In the consumption/leisure model, let the consumer’s utility function be U(C,l)=C.25+l.25. Suppose Pc=$1 and w1=$10 determine the optimal amount of C and L and the equation for the labor supply. B. Suppose w2=$12 determine the new optimal C and L and determine the substitution and income effects of the price change of leisure.
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