(c) Suppose that County Y has the same $40 subsidy for welfare-eligible mothers who do not work, but that it reduces the subsidy for those who have earnings by 80 cents for every dollar earned. That is, its daily subsidy is as follows: Daily subsidy = 40 .8E Draw the budget constraint facing welzre-eligible mothers in County Y, again assuming a mother who can earn $5 per hour. At what level ofeumiugs does the subsidy become zero? (d) Do you expect the labor force participation rate among low-income mothers in County Y to be above that in County X? Why? (e) Now focus on a group of low-income mothers in County X who choose to work 9 hours a day (at $5 per hour). Would they work more, less, or the same number of hours if they faced a constraint like that in County Y? 4. Suppose County X (see question 3a above) decides to change its welfare program in the following way: Ifan eligible mother does not work, she receives $40 per day. If she decides to work she will continue to receive $40 per day until her earnings reach $20 per day (at which point she has a daily income of $60); that is, she can \"keep\" both any earnings and her daily subsidy of $40 until her earnings reach $20. Aer earnings go above $20, she receives nothing from the welfare department (her subsidy is reduced to zero). (a) Draw both the \"old\" the budget constraint in Country X m the new one created by this new program for a woman who can earn $5 per hour and has 16 hours of available time per day. (b) Comparing the two constraints in 4(a), what do you expect to happen to the labor force participation rate among welfare mothers in County X as a result of the new program? (c) Analyze the effects on hours of work for welfare mothers in County X who would NOT have worked before the new program. (d) For potentially eligible mothers in County X who would have worked with the old welfare system (and would therefore not have received welfare), what effect will this new program have on their work incentives