Question: Problem 2. If S is the present value of a perpetuity of 10 per year with the first payment at the end of the second

Problem 2. If S is the present value of a perpetuity of 10 per year with the first payment at the end of the second year and 20s is the present value of a series of annual payments 1,2,3,... with the first payment at the end of the third year, find the value of d. 3 points)

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=+side do the two effects approximately cancel? Do you think it is a reasonable hypothesis that tastes for leisure vary by geography? Why or why not?

=+ a. What happens to the labor demand curve?

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