(Solution Library) Consider the problem of maximizing u(c, \ell) subject to p c+w \ell= w T+Y, where c is consumption, \ell is leisure time, T is the total


Question: Consider the problem of maximizing \(u(c, \ell)\) subject to \(p c+w \ell=\) \(w T+Y\), where \(c\) is consumption, \(\ell\) is leisure time, \(T\) is the total time endowment, and \(Y\) is non-wage income. Prove that the labour supply function is downward-sloping only if leisure is a normal good.

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