Due Thursday, September 23 at 5 pm 1 The labor-leisure tradeoff Once you graduate, you will enter the workforce and decide how hard to work in order to earn money to spend on gadgets, which cost $1 each. Working pays a wage of s per hour for the first 5 hours of work, and s' per hour beyond that point. You must also pay taxes on your labor income at rate t for all income in excess of the threshold M. Finally, you have to sleep, so you can't work more than 18 hours a day. Your choice on a given day is how many hours a day to work and how many gadgets to buy. For each of the following economies, draw your choice set. Make sure to label the coordinates of any kinks in the budget constraint, as well as the intersections of the budget constraint and each axis. 1. s = $6, s' = $8, t = 30%, M = $70 2. s = $5, s' = $7, t = 40%, M = $20