1. Tr'ou work at as an economics tutor, which pays $211] per hour. You split the 24 hours in the between work and leisure. You use your labour earnings, combined with your daily investment income of $175, to purchase consumption goods. You value consumption and leisure according to the following utility function: U = c1"r E\"L2!" 3, so MRS = %. {a} [5 pts] How may hours per day will you choose to work? What will be your level of utility? Illustrate your answer with a carefully labelled graph. [b] [5 pts] Suppose you have a child, and you need to pay a xed cost of $100 per day in child care in order to work any number of hours. How many hours per day will you choose to work now+ and what will be your level of utility? Illustrate your answer with a carefully labelled graph. (c) [5 pts] The government offers a wage subsidy for working parents. For every dollar earned, the government will provide a subsidy of $1 to the working parent. Now, how many hours per day will you choose to work, and what will be your level of utility? Illustrate your answer with a carefully labelled graph. (d) [5 pts] Which would you prefer: the policy from part (c), or a traditional child-care subsidy in which the government makes a fixed transfer of $100 per day to working parents? Explain