Sergio derives utility from consumption and leisure U(c,l)=c^3/4 l^1/4
The price of consumption is Pc and for every hour he works he earns wage w. Sergio's total time available is T, so that his budget constraint is: Pcc=(T−l)w How do optimal leisure and consumption change when wage increases? What if inflation doubles both P cand w, how do the optimal quantities change? What if Sergio is no longer taking classes at JHU so his available time T also doubles? Draw the Marshallian demand curve for l for various values of w. Is l a normal good?