b) What does economic theory predict about the labour supply response to the introduction of the EITC, both on the extensive margin (the decision about whether or not to work) and on the intensive margin (the decision about how many hours to work conditional on working)? Do the incentives to supply labour vary as a function of earnings at different parts of the EITC schedule at the time of its introduction in 1975? To be concrete, consider three individuals whose household earnings prior to the EITC's introduction were, respectively, 50, $10,000 in constant 2013 USD, and $30,000 in constant 2013 USD. How would the introduction of the EITC affect labor supply incentives for each of these individuals? Would these incentives offered through the EITC additionally vary depending on whether or not a mother is married?2 You can refer to Figure 4.8 in Bastian (2020), specifically the blue 1975 EITC schedule, to help you answer this