Question: 1. (12 points) Consider an individual that has a utility function: U = 3GS L.5 where G is units of goods consumed in a day

1. (12 points) Consider an individual that has a utility function: U = 3GS L.5 where G is units of goods consumed in a day and L is hours of leisure enjoyed in a day. The individual has a time endowment of 16 hours for the day. The price of goods is $5/unit. a) What is the reservation wage of this individual when non-wage income is $10? b) What is the reservation wage of this individual when non-wage income is $100? c) How much labor will this person offer to the market and how many goods will be consumed when non-wage income is $100 and the wage is $25/hour? d) How much labor will this person offer to the market and how many goods will be consumed when non-wage income is $100 and the wage is $25/hour AND there is a tax of 25% on any income earned above $150

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