Question 2 [30 marks] Consider a variation of the model of Veblen effects, conspicuous consumption, and working time, presented in Bowles and Halliday, Ch. 7, and in class (25/01/ 2023). Suppose now that the consumer has preferences over consumption, :3, and labour, 0 g h g 1, represented by: u(a:,h) = 2V3: vg h As before, the wage rate is 11). Meanwhile, v > 0 denotes the Veblen effect and i denotes the consumption of the rich, so that effective consumption may be written 33\" = m 1);. a) [5 marks] Write down the consumer's budget constraint, and sketch it, along with the feasible budget set, in the sch-space. b) [5 marks] Find an expression for a consumer's indifference curve, and characterize its slope, intercepts (if any), and curvature. Then, sketch a few such curves in the ash-space, together with the constraint found in a). Where would the optimum lie? Explain your answer. c) [10 marks] Solve the consumer's optimization problem for a: and h. Do the original model's conclusions regarding the link between income inequality and work hours still hold? Why or why not? Explain your answer. (1) [10 marks] Suppose instead that 11(33, h) = a: a); (1 / 2) IF. Is income inequality still a concern for work hours in this case? Is conspicuous consumption of the rich still a \"public bad\"? Explain your answers