Supopose the Individuals utility for Consumption function C and Leasure L is given by

3. Suppose that an individual's utility function for consumption, C, and leisure, L, is given by U(C, L) = C0.5 L0.5 This person is constrained by two equations: (1) an income constraint that shows how con- sumption can be financed, C = wH +V, where H is hours of work and V is nonlabor income; and (2) a total time constraint (T = 1) L+H =1 Assume V = 0, then the expenditure-minimization problem is minimize C -w(1 -L) s.t. U(C, L) = C0.5105 = U 5 (a) Use this approach to derive the expenditure function for this problem. 5 (b) Use the envelope theorem to derive the compensated demand functions for consumption and leisure. 5 (c) Derive the compensated labor supply function. Show that OH/Ow > 0