u(C,L) = ln(C)+ln(L)Time endowment T= 24-9 =15Wage rate w= 10Pocket money V= 10 from parentsMax ln(C)+ln(L)subject to C= 10(15-L) +10a) Solution?b) What if gov’t increases minimum wage to 12?c) What if gov’t provides student subsidy and gives you $20/day...
