Beth earns an hourly wage of $10. Total number of hours available for work per week is 60 hours. Under the current income tax system, Beth pays no taxes on the first $200 she earns per week, and after that Beth pays 20% of her income on tax. Under this tax system, Beth chooses to work 30 hours each week. For the following questions, please put all the lines and numbers in ONE diagram.

1. Draw Beth's before-tax budget constraint, after-tax budget constraint, and mark her optimal labour- leisure choice on the diagram. How much leisure would Beth enjoy each week? How much pre-tax income Beth make per week? How much after-tax income Beth make per week? And how much tax that Beth pay per week?

2. The government needs tax revenue to avoid a deep deficit. It cancels the tax exemption on the first $200 earned per week. That is, Beth has to pay a 20% tax on all the income she earns. Under this new tax system, Beth now chooses to work 40 hours. Please add her new after-tax budget constraint and new optimal labour-leisure choice on the diagram. Under the new tax system, how much leisure Beth enjoys? How much pre-tax income she makes? How much after-tax income Beth makes? And how much tax she pays?

For all the questions, please put all the lines and numbers in ONE diagram.