Question: 1) An individual utility function is given by U(c,h) = c·h, where c represents consumption during a typical day and h hours of leisure enjoyed during that day. Let l be the hours of work during a day, then l + h = 24. The real hourly market wage rate the individual can earn is w = $20. This individual receives daily government transfer benefits equal to n = $100. For the graphical analysis of this individual's utility maximization problem, consumption c is plotted on the vertical axis and hours of leisure h is plotted on the horizontal axis. The y-intercept for this individual's full income constraint is [y]
2) Assume labor market demand is given by: lD = 10 - w and labor market supply by: lS = w - 2. Suppose that a union has a monopoly in the supply of labor. Suppose also that the goal it has decided to pursue is to maximize employment of its members. In this case, the quantity of labor it will offer is [l].