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The ECS3708 assignment 3 Sem 1 2024 is a generic document that helps students to
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1
, 0717513144 ECS3708 ASSIGN 3 SEM 1 2024
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
U = CL – 80C – 200L + 16000
MUL = UIL = C – 200
(b) Find the marginal utility of consumption (3)
MUc = UIc
U = CL – 80C – 200L + 16000
MUc = UIc = L – 80
(c) Specify the consumer’s income constraint. (3)
𝑡𝑜𝑡𝑎𝑙 𝑡𝑖𝑚𝑒 = 168 = 𝑊 + 𝐿
The ECS3708 assignment 3 Sem 1 2024 is a generic document that helps students to
compile their own assignments. Those who need further assistance must contact the given
details:
CONTACT NUMBER:
071 751 3144
1
, 0717513144 ECS3708 ASSIGN 3 SEM 1 2024
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
U = CL – 80C – 200L + 16000
MUL = UIL = C – 200
(b) Find the marginal utility of consumption (3)
MUc = UIc
U = CL – 80C – 200L + 16000
MUc = UIc = L – 80
(c) Specify the consumer’s income constraint. (3)
𝑡𝑜𝑡𝑎𝑙 𝑡𝑖𝑚𝑒 = 168 = 𝑊 + 𝐿
