Suppose the consumer had preferences described by U(C,l)=C^(2/3)*l^(1/3).
June 7th, 2024
Suppose the consumer had preferences described by U(C,l)=C^(2/3)*l^(1/3). They have 4 hours in a day, the real wage is 3, and the dividend income is 6.Part a: Write the Lagrangian for this problem.Part b: Solve for the consumer’s optimal bundle.Part c: Graph the consumer’s budget constraint and the indifference curve which goes through the optimal point. Label the intercepts of the budget constraint and any corners on the budget
