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Buying and Selling question

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Nupur

Buying and Selling question

Granpa Simpson

Re: Buying and Selling question

The answer will be 9 hrs..however plz do check...!!!!

"I don't ride side-saddle. I'm as straight as a submarine"

Anakin Skywalker

Re: Buying and Selling question

In reply to this post by Nupur

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Nupur

Re: Buying and Selling question

In reply to this post by Granpa Simpson

Its given as 8!! It's question 9.15 part (d) of Varian Workouts.

Nupur

Re: Buying and Selling question

In reply to this post by Anakin Skywalker

Anirudh C is not given. We have to find out C (consumption) and R(Leisure) and then L(labor) using two equations: optimality condition: MRS=W/P and the equation of the Budget line.

Granpa Simpson

Re: Buying and Selling question

In reply to this post by Nupur

Yes it will be 8 hrs only..i did a silly calculation mistake..!!!

"I don't ride side-saddle. I'm as straight as a submarine"

Granpa Simpson

Re: Buying and Selling question

In reply to this post by Nupur

Max U=C-(12-R)^2 s.t constraint 0.8*{20+10*(16-R)}=C, you will get the answer.

"I don't ride side-saddle. I'm as straight as a submarine"

Anakin Skywalker

Re: Buying and Selling question

In reply to this post by Nupur

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Nupur

Re: Buying and Selling question

In reply to this post by Granpa Simpson

Thanks Subhayu and Anirudh!