Question: How does Raymond's daily income depend on the wage rate?1answer below Raymond consumes leisure ( L hours per day) and other goods ( Y units

How does Raymond's daily income depend on the wage rate?1answer below

Raymond consumes leisure (Lhours per day) and other goods (Yunits per day), with preferences described byU(L, Y) =L+ 2Y.The associated marginal utilities areMUY= 1 andMUL= 1/LThe price of other goods is 1 euro per unit. The wage rate isweuros per hour.

a) Show how the number of units of leisure Raymond chooses depends on the wage rate.

b) How does Raymond's daily income depend on the wage rate?

c) Does Raymond work more when the wage rate rises?

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