題組內容
6. A utility-maximizing individual allocates his monthly time of 720 hours into work (H) and leisure (N). He gains utility from his leisure hours (N) and the income (Y) he earns from his work hours (H). His utility function is $U(Y, N) = Y^\alpha N^\beta$, where $\alpha$ and $\beta$ are positive parameters. The person's hourly wage is given by w, and he has non-labor income Y.* Suppose the government imposes a tax on labor income. The tax rate is t, where 0 < t < 1. (25%)
(3) Suppose the government does not impose a tax on labor income but a lump-sum tax of T dollars. What will be the individual's leisure demand and labor supply functions? (7%)