Question: (1) (30 points) Labor Supply An individual values both consumption (C) and leisure hours (L) and plans her weekly labor supply (H) by maximizing her

(1) (30 points) Labor Supply An individual values both consumption (C) and leisure hours (L) and plans her weekly labor supply (H) by maximizing her utility. 1 1 C2 U = cLZ. She is free to choose the hours (H) she will work, earning a wage rate w for each hour up to a maximum number of available waking hours T. She receives no other income (her family loves her but they are not well off). The Government Intervention. Imagine that the government believes that the worker's total income is too low, and decides to supplement the worker's earnings by a fraction s, O

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