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Bernice is has the following utility over leisure (l) and consumption(c): u(l,c) = min{l,c}. We presume...

Bernice is has the following utility over leisure (l) and consumption(c): u(l,c) = min{l,c}. We presume that the wage is $9 and that the time allocation is T = 100. The price of consumption is normalized at $1. She has no other income.

(a) How much will she consume and how much time will she work?

(b) If the wage rises to $19, how much will she consume and how much time will she

work?

(c) Is the supply of labour upward or downward sloping for the change in the wage?

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