1. (4 points) If Jane works 3 hours per day, how much are her labor earnings and benefits?

Labor earnings: __________

Benefits:__________

1. (4 points) After how many hours of work does Jane no longer receives any benefits?
3. Number of hours: _________

1. 14 points - 2 points each) Below is a sketch of Jane's budget constraint. Fill in the missing numbers. Note: graph not necessarily drawn to scale.

1. (4 points) Suppose that Jane's benefits are now reduced dollar of dollar. Draw her new budget constraint on the graph below.