Question: This is a microeconomics question. A and B are work-study students. Their utility functions representing satisfaction per day are: A=Ua=C 2 H. B=Ub=CH 2 C=Consumption

This is a microeconomics question. A and B are work-study students. Their utility functions representing satisfaction per day are:

A=Ua=C2H. B=Ub=CH2

C=Consumption H=Leisure or Non-work hour

Each works L hours per day, consumption costs each $P per unit.

Question: Explain in words that why a increase in the real wage (w/P), will not change the number of hours worked by A using the Hicks-Slutsky decomposition.

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