Question: Shelly's preferences for consumption and leisure can be expressed as LUCA-IC-100) (L-40)- This utility function implies that Shelly's marginal utility of leisure is C- 100

Shelly's preferences for consumption and leisure can be expressed as LUCA-IC-100) (L-40)- This utility function implies that Shelly's marginal utility of leisure is C- 100 and her marginal utility ot consumption is L-40. There are 110 hours in the week available to splik between work and leisure, Shelly earns S10 per hour after taxes. She also receives $320 worth of assistance benefks each week regardless of how much she works. (a) Graph Shelly's budger line. (b) What is Shelly's marginal rate of substitution when L= 100 and she is on her budget line? (C) What is Shellys reservation wage? (di Find Shellys optimal anount of consumotion and leisure

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