Jack has a utility function of the following: U(L, X) = min{L, X}, where L is leisure and X is consumption. If he works, he receives real wage w. Outside of the labor market, he has non-labor market income V. And his endowment of time, T, is normalized to 1. And the price of goods, p, is also normalized to 1.

(a) Jack divorces Kate. As a result, Jack needs to spend 0.2 units of time taking care of their kid, Arron. (at is, Jack now has only T minus 0.2 hours for him to decide freely on working or doing leisure.) Please write down and draw the new budget constraint.

(b) What are the new optimal hours of working and the new optimal consumption for Jack?

(c) Use the graph you draw previously 2(a)-2(d) to explain how the divorce affects Jack's optimal working hours and decompose the total effect into income and substitution effect.