In any given week, Anne receives satisfaction only from the consumption of goods and from the consumption of leisure , which is measured in hours. Obviously, Anne consumes many different types of goods, but for simplicity we aggregate the dollar value of all the goods that she consumes during the week and call it. Assume that if Anne chooses to work, the hourly wage rate is=8 and she has to sleep 8 hours per day. Potentially, if she wants, she can work up to 7 days a week.

a) If Anne chooses to devote 0 hours to leisure during the week, how much can she consume?=

b) Suppose=5and the government gives Anne a subsidy of $100. She receives this money unconditionally, regardless of how many hours she works. We define Anne's budget set over bundles of C and L, i.e. (C,L). Placing C on the horizontal axis and L on the vertical axis, depict Anne's budget set. The outer boundary of Anne's budget set has a kink at (C,L)=(100,____) (fill in the blank)

c)Suppose=5and the government gives Anne a subsidy such that her consumption is at least $100. That is, if she does not work at all, the government gives her $100. If she works enough to earn some<100 dollars towards consumption, the government gives her$100. If she works enough to earn100, the government does not give her anything. We define Anne's budget set over bundles of C and L, i.e. (C,L).Placing C on the horizontal axis and L on the vertical axis, depict Anne's budget set. The outer boundary of Anne's budget set has two kinks. One kink - the one with the higherof the two - is at (C,L)=(100,____) (fill in the blank)