Anson is eligible to collect a public pension of $15,000 a year. He has no other nonlabour income, but is able to work a job that pays $1,000 a week for up to 50 weeks. Pension benefits are retirement tested. Anson can earn up to $15,000 in annual labour income without affecting his pension benefits. However, for every dollar earned above $15,000, his benefits are reduced by 50 cents until his benefits are exhausted. Answer the following: (a) Carefully draw and label Ansons budget constraint. (3 marks) (b) Anson chooses to work such that his pension benefits are $7,000. Find Ansons choice of leisure and with the use of an indifference curve, carefully indicate his optimal choice of leisure and consumption. (3 marks) (c) As part of pension reforms, the government eliminates the retirement test. Anson can now keep his benefits regardless of how much he earns working. Sketch Ansons new budget constraint. Leisure is a normal good for Anson. Is it possible to determine with certainty whether he will increase or decrease his labour supply with the elimination of the retirement test? Explain. (4 marks)