Consider a closed economy with consumption, production, and government. The representative consumer alwaysdesires a consumption bundle where the quantities of consumption and leisure are such that C=al and a = 1.%3DShow the following on your answer sheet.[1] Suppose that w = 0.75, profit = 8, and T = 6. Determine the consumer's optimal choice of consumption and leisure,%3D%3Dshowing every step of your calculation.[2] Illustrate the consumer's equilibrium from part [1] in a diagram.(Don't forget that after you finish answering all questions from this entire Part X, you need to upload yourphotographed/scanned answer in another (respective) assessment in eClass. You can not upload those handwrittenpages in this assessment).[3] To complete your answer to this question, enter only the numerical value of optimal C (that you calculated in step [1]above) in this blank here (no decimals please):

since you have asked multiple questions and according to policy we can solve only 1 question and for…

Consider a closed economy with consumption, production, and government. The representative consumer always desires a consumption bundle where the quantities of consumption and leisure are such that C=al and a = 1. Show the following on your answer sheet. [1] Suppose that w = 0.75, profit = 8, and T = 6. Determine the consumer's optimal choice of consumption and leisure, showing every step of your calculation.

Consider a closed economy with consumption, production, and government. The representative consumer always desires a consumption bundle where the quantities of consumption and leisure are such that C=al and a = 1. Show the following on your answer sheet. [1] Suppose that w = 0.75, profit = 8, and T = 6. Determine the consumer's optimal choice of consumption and leisure, showing every step of your calculation.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter1: What Is Economics

Section1.3: What Do Economists Do?

Problem 5R

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