Please answers question three.

Thank you.

C' A Parent's Consumption Parent's Consumption Uo Y' C' B' B Y'o Uo U1 C Y1 Yo C1 Co Child's Consumption Child's Consumption (a) (b)3. Now assume a new government policy places a "social security\" tax of [Tn Y1] on the child, transferring the proceeds of the tax to his parent. The child can fully offset this action by cutting his voluntary transfer to his paren15 by the amount of the tax transfer. If he does cut back on his voluntary transfer in this fashion, and if we assume that there are no transaction costs associated with the ooercive tax transfer, what is the net effect of the new tax policy on the net consumption of both himself and his parenE? [Your answer here should indicate either a positive net effect, a negative net effect, or no net effect]