1. Suppose the government is considering several options to ensure that legal services are provided to the poor. Option A: All lawyers would be required to devote 5 percent of their work hours to the poor, free of charge. Option B: All lawyers would be required to provide 100 hours of work per year to the poor, free of charge. Option C: Lawyers who earn over $50,000 in a given year would have to donate $5000 to a fund that the government would use to help the poor. Use the consumption-leisure choice model to analyze the likely effects of each option on the labour supply (hours of work) of lawyers.

2. Anna is able to select her weekly work hours. When a new bridge opens up, it cuts one hour off Anna’s total daily commute to and from work. How does the shorter commute time affect Anna’s hours of work? How does is it affect her reservation wage? Illustrate your answer using the consumption-leisure choice model.

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