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Question 1. The representative consumer has a preference for leisure (1) and consumption (C) described by the following
Posted: Thu May 19, 2022 10:08 am
by answerhappygod
- Question 1 The Representative Consumer Has A Preference For Leisure 1 And Consumption C Described By The Following 1 (36.42 KiB) Viewed 35 times
Question 1. The representative consumer has a preference for leisure (1) and consumption (C) described by the following utility functions: Case 1: U(C,1) = CS, Case 2: U(C,) = C + 2logl, Case 3: U(C, 1) = 2log C + Blogl. Suppose that this consumer currently supplies 0.64 units of labor (h = 1) and consumes 7.2 units of the consumption. How many units of consumption is this consumer willing to give up, at the margin, to enjoy more leisure? Provide the solution for all cases.