Suppose that a representative consumer has the following utilityfunction: U(C,L)=5ln(C)+2ln(L) and she has the budget constraintw(h-L)+pie-T. Derive the consumer's rules for consumption andleisure (solve for consumption and leisure \"demand functions\" as afunction of exogenous variables).
Graph and discuss the income and substitution effects for aconsumer if her wages decreased (with labels).
