Question: Suppose Tammy has a utility function U (C, L) = 2 + v02 + L2, where C is con sumption and L is leisure. Tammy

Suppose Tammy has a utility function U (C, L) = 2 + v02 + L2, where C is con sumption and L is leisure. Tammy has a total of T hours for work and leisure. The wage rate is w and Tammy has no nonlabor income. (a) Express Tammy's utility maximizing choice of work hours in terms of w and T. (5 marks) (b) If wage rate 1:.) decreases, would Tammy's labor supply increase, decrease, or remain unchanged? Explain why

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