Question: Suppose representative consumer preferences can be expressed as U = al + bC, where a & b are constants. The budget constraint, consumer faces is

Suppose representative consumer preferences can be expressed as U = al + bC, where a & b are constants. The budget constraint, consumer faces is C = w(h - l). Question 32 options: 1) for consumer, leisure and consumption are perfect substitutes 2) Consumer will optimize with no units of consumption goods, if a/b > w 3) Consumer will optimize with no units of leisure, if a/b

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