Question: Considerautilityfunction: U(c,l)=(1)log(c)+log(l),where>0. 1 (a)Suppose that the consumer has one unit of time, w = 0.75, = 0.8, and T = 1.0. Determine the consumer's optimal

  1. Considerautilityfunction: U(c,l)=(1)log(c)+log(l),where>0.

1

  1. (a)Suppose that the consumer has one unit of time, w = 0.75, = 0.8, and T = 1.0. Determine the consumer's optimal choice of consumption and leisure, and show this in a diagram.
  2. (b)Now suppose that wage double, i.e. w = 1.5. Again, determine the consumer's optimal choice of consumption and leisure.

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