Question: I found the answer to the problem which is 11.5 Hours. But, I want to understand the whole process to get to the answer. Why

I found the answer to the problem which is 11.5 Hours. But, I want to understand the whole process to get to the answer. Why is it 11.5?

 I found the answer to the problem which is 11.5 Hours.

a On an optimal choice diagram, draw the budget con- straint. (Hint: It is not a straight line.) (b) Draw a set of indifference curves that would make it optimal for him to work 4 hours of overtime each day. 5.21 Terry's utility function over leisure (L) and other goods (Y) is U(L, Y ) = Y + LY. The associated marginal utilities are MUy = 1 + L and MUL = Y. He purchases other goods at a price of $1, out of the income he earns from working. Show that, no matter what Terry's wage rate, the optimal number of hours of leisure that he consumes is always the same. What is the number of hours he would like to have for leisure? 5.22 Raymond consumes leisure (L hours per day) and other goods (Y units per day), with preferences described by TI( ) L + 2VY The

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