Exercise1 (20 points) Background readings Chapter 4 Scenario1 Consider an individual who has a 2-year undergraduate Diploma in Business and has a $30,000/year wage profile over his life cycle. Now, this individual receives higher education and an MBA from Penn State University. With this MBA, this individual has a $100,000/year wage profile over his lifecycle, getting this wage at each and every age. At age 50, this individual receives and unanticipated, one-time wage increase of $25,000 associated with overtime pay that is not expected to be repeated. Instructions: evaluate, discuss and explain the labor supply response, choice of hours work of this individual using the dynamic life cycle model. Consider all sources of wage differences outlined in the dynamic life cycle model that applies to this scenario1. Explain with words graph.