17 Jul Solve this worker’s optimal labor-leisure choice, for budget line 1, budget line 2 and budget line 3.
Budget line 1: Wages are $12 per hour. No income tax. Draw budget line 1. (ii) Budget line 2: Wages are $24 per hour. Draw budget line 2. (iii) Budget Line 3: Wages are $12 per hour. Non labor income also is received at $300 per week. No income tax. Draw budget line 3. (iv) Utility(c,r) = c3r5 Solve this worker’s optimal labor-leisure choice, for budget line 1, budget line 2 and budget line 3. Label the optimal points on the diagram, with the solved numbers, and draw the Cobb-Douglas indifference curves.
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