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

This is a microeconomics question. A and B are work-study students. Their utility functions representing satisfaction per day are: A=U_a=C²H. B=U_b=CH²

C=Consumption H=Leisure or Non-work hour

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

Suppose B is given additional non-wage income equal to K per day. Explain why leisure must be a normal good for both A and B. Is consumption a gross substitute for leisure when only w changes for A?

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