Question: 3. Consider an alternative utility function given by U = ept (In Ct - Bly) dt. (4.23) Show that the labour supply curve becomes perfectly

3. Consider an alternative utility function given by U = ept

3. Consider an alternative utility function given by U = ept (In Ct - Bly) dt. (4.23) Show that the labour supply curve becomes perfectly elastic. How does an increase in consumption C shift the labour supply curve

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.