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Jack has preferences for consumption and leisure that can be described by the !/# $/# preferences:...

  1. 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

    leisure.

    1. Find jacks ??%, ??&, ??? |???|

    2. Assume Jack’s wage is $20. Find Jack’s optimal combination of consumption and

      leisure. How many hours will he work?

    3. 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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