Question: 2. [3t] points} Suppose a representative consumer has preference over consumption (c) and leisure [1?]. Her indifference curve is described by the following utility function:
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2. [3t] points} Suppose a representative consumer has preference over consumption (c) and leisure [1?]. Her indifference curve is described by the following utility function: u(c, l] : 'l'lnt'c} | Elu] Her time endowment is given by h = 2. The wage rate is 3 in terms of consumption goods. Suppose she has 4 units of dividend income from rm and pays 3 unit of lumpsum tax to the government. {a} 1|Iii-"rite down the budget constraint for this consumer. {b} Compute this consumer's optimal choice over consumption, leisure and working time. Plot his indifference curve, budget constraint and optimal choice. You need to label the intersection of the budget constraint with xaxis and ysxis: and the optimal choice
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