5. Consider the following graph that plots the comparative statics of the labor supply decision by utility-maximizer Ruths. Initially, the budget line was given by line 12 segment EF. Suppose that initially, the non-labor incomes such as capital incomes and welfare payments are taxed at a rate 6, and labor incomes are taxed at a rate 1'. After a reform in the taxation system, the budget line became EG. The convex curves U.) and U1 are the indifference curves of Ruth. Assume that leisure is a normal good. Consumption ($) U1 65 70 80 110 Hours of Leisure (a) Did the tax reform change the 6 or 1' or both? In what direction? (b) After the tax reform, did labor supply increase, decrease, or unchanged? Why? (c) If there were only income effects from the tax reform, how would labor supply change