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Please explain answers with details. Suppose that the government announces a welfare program where an individual is eligible for $340 per month. The individual may
Please explain answers with details.
Suppose that the government announces a welfare program where an individual is eligible for $340 per month. The individual may choose not to work and receive $340 per month. If she works 1 hour, she will earn $2.
a)Draw the budget constraint before and after the welfare program on the same graph.
b)After this individual works a certain number of hours, she does not receive any benefit at all. What is that number of hours of work? Show it on your graph.
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