1) (25 point) Suppose Jerry is a minimum wage earner and has the following utility function. U(c, 1) = C-(24 -1)2 where I is leisure and c is consumption of goods and services. Price of c is equal to $1. a) How many hours does Jerry work if the hourly wage rate is equal to $12. b) Compare the impact of each policy change listed below on Jerry's work incentives for the income maintenance programs below: Alternative 1: An income maintenance program of $100 basic benefit and 0.5 benefit reduction rate. Alternative 2: An increase of minimum wage to $16