all parts (a) - (c) of this question.(a) [8 marks] Consider an agent whose preferences over any couple (x1, x2), where x1 R+and x2 R+, e.g., apples and oranges, is such that she prefers the bundle that is closest tohaving the same number of apples and oranges. Write a utility function u : R2+ R+ whichrepresent these preferences.A politician remarks "Our recent increases in the wage rates of teachers has been a total success! The shortage of teachers has been reduced drastically. Another, similar wage increaseshould eliminate this shortage entirely"(b) [10 marks] Explain and illustrate in a diagram what is meant by "income effects" and"substitution effects" of a wage rate change.(c) [9 marks] Explain and illustrate how you would model the labour supply decision of apotential teacher. Do you agree that the wage increase will increase the labour supply in thiscase? Carefully outline the assumptions underlying your argument