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Q: Consumption, Leisure Time, Income ( No Answer,   0 Comments )
Question  
Subject: Consumption, Leisure Time, Income
Category: Business and Money > Economics
Asked by: dime365-ga
List Price: $10.00
Posted: 02 Feb 2004 04:12 PST
Expires: 02 Feb 2004 17:58 PST
Question ID: 302717
Consider the problem of maximizing u(c,l) subject to  pc + wl = w + y,
where c is consumption, l (element of (0,1) is leisure time, and y is
non-wage income.  Prove that leisure must be a normal good for the
labour supply function to be downward sloping.

Pleas use direct methods and comparative statics.
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