Here is the problem: A worker has a utility function over consumption (C) and le
ID: 1184831 • Letter: H
Question
Here is the problem: A worker has a utility function over consumption (C) and leisure (L) of U(C,L)=C*L^2 Non-labor income = V. And T = # of hours available for work, (h) or leisure(L). T=h+L Assume price of consumption = $1 (a) write the mathematical expression for the budget constraint, and show in graph. ------> This I know how to do. (C=w(T-L)+V) (b) Derive labor supply as a function of w, T, and V. (c) Is labor supply increasing or decreasing in w? (d) Suppose T=16, and V=10. What is the worker's reservation wage? Please help, midterm tomorrow and I can't figure this out for some reason.Explanation / Answer
i am giveing a pdf file....there are 4-5 similar example and solution like 2.3-2.8
https://webspace.utexas.edu/hamermes/www/Chap002Solutions.pdf
u can see this file if u got some help than please rate me