Jack has preferences for consumption and leisure that can be described by the
preferences: ?(?, ?) = ? ? . Assume he has 24 hours to to split between work and
Find jacks ??%, ??&, ??? |???|
Assume Jack’s wage is $20. Find Jack’s optimal combination of consumption and
leisure. How many hours will he work?
Now assume Jack grandmother sends Jack $40 a day because he is her favorite.
All else equal, how many hours will Jack work now?
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