Re: Doubt : Work-Leisure trade off

Posted by Nupur on May 29, 2014; 8:42am
URL: http://discussion-forum.276.s1.nabble.com/Doubt-Work-Leisure-trade-off-tp7590955p7590960.html

Neha I'm actually getting very confused with the "real" dividend income thing! Can you check and tell me if the answers of the first two parts are correct, because only then its reasonable to proceed to other parts!!- Here are my answers:
Budget Line: C+WL=(P-T)+WH
And the optimum bundle is coming as: L*={(P-T)+WH}/(2+W)
and C*={2/(2+W)}*{(P+T)+WH}