Jennifer Has the Following Utility Function: U(C, L)= (CL)^1/2 where

Essay

Jennifer has the following utility function: U(C, L)= (CL)^1/2 where C is the quantity of goods consumed and L is the number of hours of leisure. Jennifer requires eight hours of rest each day. Therefore she has 16 hours available for work. Let H be the number of hours employed such that H = 16 - L. Let P be the price of C and W be the hourly wage. Assume she is required to pay an income tax of T = 0.3( Y - 60)where Y is her pretax income. How many hours per day will she work at P = $1 and W = $10?