1.Labor Supply: Michelle has the following budget constraint, C = 15h, and her optimal bundle is consuming $60 worth of goods. Assume there are only 24 hours in a day which can be spent on either work or leisure.

1.1. How much leisure does Michelle consume? (2pts)

2. Graph and label Michelle's budget constraint, optimal bundle, and indifference curve. Be sure to label all curves, both axes, and the intercept values. (3pts)

3. Explain what will happen to hours worked if the hourly wage increases to $25? Be sure to discuss the substitution and income effects for full credit.(2pts)

4. Explain how the following scenarios impact labor supply. Be sure to indicate whether this impact is likely on the intensive or extensive margin, and clearly state the assumptions used to reach your conclusion. (3pts)

1. Welfare benefits
2. Remote work iii.Paid family leave