ECS3708 ASSEMMENT 2 SEMESTER 1 2024 Suppose that the consumer’s weekly utility function for consumption (C) and leisure (L) is explained by: U(C,L)=(C-200)(L-80) Assuming that there are 168 hours in a week available to allocate between work and leisure.

BMZ ACADEMY




BMZ ACADEMY

@061 262 1185/068 053 8213/0717 513 144




BMZ ACADEMY 061 262 1185/068 053 8213/0717 513 144

, ECS3708/ASSIGNMENT 3/2024




Assignment 03 Semester 01




Applied Microeconomics

ECS3708




Semester 1




Department of Economics




This tutorial letter contains Assignment 3 Questions.

, BMZ ACADEMY




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Question 1
(20)




Suppose that the consumer’s weekly utility function for consumption (C) and
leisure (L) is explained by:

𝑈(𝐶, 𝐿) = (𝐶 − 200)(𝐿 − 80)

Assuming that there are 168 hours in a week available to allocate between
work and leisure. If you earn R5 per hour and you also receive a social grant
of R350 each week.

(a) Find the marginal utility of leisure
(3)




MUL = UIL

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