1. [25 points] Suppose Bob has 50 hours available to work in a week and could earn $10 per hour when working. Bob has $100 per week in non-labour income. To start, assume that Bob chooses to work 20 hours per week. a) b) [10 points] Suppose Bob becomes a parent and now must pay $100 per week for child care if he works at all. Draw Bob's budget constraint before and after becoming a parent and briey explain, with reference to any income and substitution effects, how becoming a parent might change Bob's labour supply choices. [10 points] Assume that as a parent, Bob chooses to work 25 hours per week. The governments in all provinces then introduce the following Child Care policy: They offer to cover all child care costs if an individual earns exactly $100 per week. For every dollar earned above $100 per week, they reduce coverage of child care costs by 50 cents. Given Bob's preferences, how is this policy likely to change his labour supply choice? Refer to any income and substitution effects associated with introducing this program. [5 points] Suppose the Quebec government decided to modify the program (to be different from the rest of Canada). They raise the lower threshold for receiving a child care benefit to $200 per week (maintaining the same type of reduction in benefits for every dollar earned over $200). Explain how the budget constraint would change for a parent in Quebec (use a new graph to clarify your answer)