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.

Suppose B is given additional non-wage income equal to K per day. Characterize the property of gross substitution. Demonstrate that consumption is a gross substitute for leisure when only w changes for B.

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