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Jasmine can work as much as 64 hours per week. She receives $200 per week in non-wage income. Her utility function for leisure and consumption is U(R,C)=320R^(1/2)+2C, where R is hours of leisure and C is consumption. The price of consumption is unity.
What are the substitution and income effects for leisure of an increase in the wage rate from $20 to $40?
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