Terry utility function over leisure (i) and other goods (y) is U(y,1)+y+1*y. the associated marginal utilities are M Uy=1 +1 and M U1=y. he purchases other goods at price of $1, out of the income he earns from working.
A. show that, no matter what Terrys wage rate, the optimal number of hours of leisure that he conusmes is always the same
B. what is the number of hours he would like to have for leisure
C. what must be true about terrys substitution and income effects for leisure when the wage changes?