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Hi can you please answer those questions for me with an explanation? Thanks! In the following diagram, Dave's budge line is presented along with an

Hi can you please answer those questions for me with an explanation? Thanks!

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In the following diagram, Dave's budge line is presented along with an indifference curve from Dave's indifference map. Use the information in the diagram to solve the following questions. 1. Dave chooses to work days and earns a wage of 35 /day. 2. Suppose that the Canadian government taxes income at flat rate of 40%. The government allows workers to claim a tax credit (basic personal amount) of $20,000. On the diagram below, show Dave's after tax budget line. 3. Suppose that Dave chooses to work just as many days after tax as before tax. Show an indifference curve consistent with this choice. 4. 0n the diagram show the substitution effect of the tax. 5. On the diagram show the total tax paid by Dave. Annual Income Days of Leisure ' Scanned with CamScanner

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