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Question: cindy gains utility from consumption c and leisure l the...

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Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U(C, L) Cx L. This functional form implies that Cindys marginal rate of substitution is C/ L. Cindy carns S10 per hour after taxes. She also receives $660 each week from her great-grandmother-regardless of how much Cindy works. a) Write out Cindys budget constraint? b) Draw Cindys budget constraint and mark all important points? c) What is Cindys reservation wage? d) How many hours will Cindy devote to leisure and to work? What will be her level of consumption in $?

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