Plot the individuals budget line


Problem

An individual participating in the labour market has a utility function given as u = where C and L are the quantity of consumption goods and leisure hour respectively. The individual has a total of T hours allocated between work (H) and leisure (L). Labour is compensated at the rate W per hour and the individual has a non labour income of V. consumer goods sell at price p per unit.

Required

a. Plot the individual's budget line.

b. Find the optimal hours of leisure and consumption goods chosen by the individual in order to maximize his/her utility.

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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Microeconomics: Plot the individuals budget line
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