Now assume that you receive an income of £140 per week from an unknown benefactor. Show the impact on your feasible set and show a new optimal choice in which consumption increases but labour supply decreases. Using the concept of the marginal rate of substitution, explain why this is a likely outcome.

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A: U(H,C) = 2 (H)1/2 + (C)1/2 Where,  H = Hours spent on household production               C = Hours…

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Q: a) You are given a utility function described as: U= U(K, L, M) = 10LogK + SLogL. + 2LogM Where K, L…

A: Goods consumed =  K, L and M  Utility = U= U(K, L, M) = 10logK + 5logL + 2logM Monthly salary = $500…

Q: k.ac.uk/mod/quiz/attempt.php.atter QUEST Imagine that you work for 40 hours per week at the wage…

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A:

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A: *Answer:    Reservation wages refers to that wage level below which the labor chooses not to work .…

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Q: None

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Q: 0.8 utils

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Q: just subpart d please

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