Assume w > 4. Under this assumption, the optimal number of hours of work (NOT leisure) is. Choose the correct one. 1 - ט W 1-w ○ 1-4w This problem considers the decisions of a consumer whose preferences are given by u(C,1)=C+4 lnl, in which C' is the quantity of consumption and I is the quantity of leisure. The consumer faces two constraints. The time constraint is given by 1 + N³ = 1 with NS as the time spent working (or the labor supply). The main advantage of working is the wages consumers receive. Consumers take wages as given (outside of their control) and obtain wage income equal to wN³. The budget constraint is C wNsT, with π as real dividend income and T as the real = lump-sum taxes paid to government.

Winona has 80 hours to divide between leisure and labor. Her utility function is u(r,c) = f(r) + c, when r represents hours of leisure,c represents dollars of consumption, and f is strictly concave. Winona’s wage is w0= $15/hr. initially, then it rises to w1= $20/hr. (i) Explain what happens to Winona’s labor supply when the wage rises,and why. (ii) Explain how the answer to (i) would change if Winona were to win a lottery.

Task 4: leisure or work? The consumer choice is not restricted to the choice of consumption goods. In fact, it can apply to all our decisions that involve trade-offs. Suppose Mary has a wage per hour of 10 euros. With her earned income she consumes. That is, C = wH per day. She also decides how many hours to work of take leisure time each day. H = 24 – N, where H is work and N is leisure. Her utility is given by C1-o U(C, N) + B log(N) 1- o (a) Solve for the optimal decision of labor/leisure. Plot the budget constraint and the indif- ferent curve. What is the labor supply function? (b) If o > 1, what is the shape of the labor supply? How does it relate with the income and

Ana decides every day how many hours to work and how much beef to consume. She spends all income earned from work each day on consumption of beef.   Her utility function for free time (t, 24 hours minus hours worked) and consumption (y) is:    U(t,y)=2t^1/2 + y The price per unit of beef consumed is 4 and her hourly wage is 1.   Using a diagram and appropriate algebra, explain what Ana’s optimal number of hours work and units of beef consumed are each day.   Ana reads a book about the impact of beef consumption on climate change and realises that there is a cost to society of her beef consumption. She takes account of this impact on society in her own decisions, incorporating a disutility of -0.03y per unit of beef consumed. She still only consumes beef and spends all income earned each day on this consumption. Explain, using a diagram and appropriate algebra, how recognition of the impact of her consumption choice on climate change impacts on Ana’s daily free time and beef…

just subparts g and h

Please correct answer and don't use hand raiting

Ivan faces a labor supply decision. His well-behaved preferences over the two goods "hours of leisure' L and 'consumption' c can be represented by u= 4(L)1/2 +c. He has no non-labor income and can choose how many hours to work at the wage rate u per hour. The price per unit of consumption is p, and his available free time is T hours Let's think about Ivan's "time expansion path" (that is, the analog of the income expansion path a.k.a. income-consumption loci but for changes in T). Sketch it and explain why it has this shape. with reference to Ivan's demand functions

Susan obtains utility by consuming carrots C and enjoying leisure L. Suppose that she has a daily non-wage income Y of £100 and is paid a fixed hourly wage rate of £10 for every hour she works in a local coffee shop. Assume that Susan is a utility maximiser and is free to choose x hours of work per day where 0 ≤ x ≤ 10. Assume also that the unit price of C is £1.  a) Suppose that L is measured on the horizontal axis and C on the vertical axis. Use these axes to draw the set of all C and L combinations that Susan can choose from. Write down Susan’s budget equation.  b) Suppose that Susan’s preferences over carrots and leisure are expressed by the following utility function: U(C,L) = min{C, 10L}. Calculate Susan’s optimal consumption bundle, both algebraically and graphically. Calculate the value of MRS at the optimal choice.  c) Suppose instead that Susan’s preferences are such that indifference curves in the L-C space are strictly convex to the origin, and that she chooses to work 5…

just subparts d, e and f please

Consider the following labor-leisure choice model. Utility function over consumption (C) and leisure (L) U(C.L) = (1/3L1/3 Total hours: H = 40 Labor hours: NS = H - L Non-labor income: π = 30 Lumpsum tax: T = 10 Hourly wage: w = 4 Suppose the hourly wage changes to w = 3. What is the substitution effect of this change on labor supply? A. +2.65 B. -2.65 C. +3.48 D.-3.48 E. None of the above