Question: Exercise 2.2: Suppose that preferences are given by the utility function u(c, () = In(c) + Aln(!), where > > 0 is a preference parameter.

Exercise 2.2: Suppose that preferences are given by the utility function u(c, () = In(c) + Aln(!), where > > 0 is a preference parameter. For these preferences, one can demonstrate that MRS(c, l) = Xc/l. Use this information, together with the conditions in (11) to solve explicitly for consumer demand, the demand for leisure and (from the time constraint) the supply of labor

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