Question 3: Suppose employees at the old soccer ball factory earn a wage of $10 an hour, and that they have a total of 140 hours a week to allocate between labor and leisure (assume the price of a composite consumption good is pc = $1). Suppose wage income is the only source of income for these employees, and assume throughout that leisure is a normal good for all employees. (a) Graph the budget constraint in leisure-consumption space (R, C') for an employee of this factory (make sure to label all axes, intercepts, bundles, slopes, etc.). (b) Suppose we increased the hourly wage rate to $15 per hour. What will the total effect on labor supply be {increase, decrease, uncertain}? Please explain your answer briefly. Note: we aren't given a utility function here, so you'll need to use the concepts of income and substitution effects in your explanation. In an effort to motivate employees to spend more time working, the factory decides to institute an overtime pay policy: for the first 60 hours worked, each employee earns $10 an hour, but for every hour worked beyond 60 hours (in a week), the employee earns $15 an hour. () On a new graph, draw the budget constraint for an employee of the factory with this overtime policy in place (make sure to label all axes, intercepts, bundles, slopes, etc.)