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Find the expression for the individual labor supply function

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Reference no: EM132478799

The Democratic People's Republic of Gruberland has two workers in its economy: worker A and worker B. Workers choose a combination of leisure and consumption to maximize their utility. The individual utility functions are as follows:

UA=C^(7/8) * Z^(1/8)

UB=C^(1/2)+(30Z)^(1/2)

where C stands for consumption, and Z stands for leisure. Any given worker is constrained by a maximum of 24 hours of leisure, or a maximum of 24 hours spent working for an hourly wage, w. One unit of consumption costs $1.

Find the expression for the individual labor supply functions, LA(w) and LB(w) for each worker. To demonstrate that you have found the correct labor supply functions, solve for the labor supplies if w=10.

Reference no: EM132478799

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