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Unformatted text preview: 2 = 3 Hence, qV 1 = 3 = 1 = ) 1 q = V 1 3 = ) L = V 2 3 = & V 1 3 2 = & 1 q 2 Thus, 1 q = p L Substituting into the FOC: w p = 1 & 1 q = 1 & p L Hence, L = & 1 & w p 2 ; V = & 1 & w p 3 ; Y = X = L & V = & 1 & w p 2 & & 1 & w p 3 1...
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This note was uploaded on 09/27/2009 for the course ECON 102 taught by Professor Serra during the Fall '08 term at UCLA.
 Fall '08
 Serra
 Macroeconomics

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