Question 3 (5 marks) Tetrfs utility.r function over leisure (L) and other goods (Ki is U (L, I") = F+LK The associated marginal utilities are M'U = l + L and MUL = Y. He purchases other goods at a price of $1, out of the income he earns 'om working. Show that, no matter what Terry's wage rate= the optimal number of hours of leisure that he consumes is always the same- (a) 'What is the number of hours he would like to have for leisure? (l marl-rs) (b) Determine the l'h'IRS of leisure for labour (2 marks} (c) Draw a leisureinuenced labor curve (2 marks) Question 4 (5 marks) Consider the production function Q = 2(KL) ['5 a) 1What is the marginal product of labgm and capital (1 marks) b) 'What is the marginal rate of technical substitution of labor for capital {2 marks) c) What is the elasticitj,r of substitution at a point K = 1: L = 1 if we increase K by one unit? {2 marks)