The price of other goods is 1 euro per unit

Reference no: EM13735754

John consumes leisure (L hours per day) and other goods (Y unites per day), with preferences decribed by U(L,Y ) = L + 2√y The price of other goods is 1 euro per unit. The wage rate is w euros per hour.
a) Show how the number of units of leisure John chooses depends on the wage rate
b) How does John's daily income depend on the wage rate?
c) Does John work more when the wage rate rises?

Reference no: EM13735754

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