Question Two Sally has an annual non-labour income of $5000. Suppose she has the total available time of 52 80 = 4160 hours per year. Sally's wage rate is $15 per hour, and she chooses to work 2000 hours in a year. Suppose Sally's wage rate rises from $15 to $18 dollars per hour, and she decides to work 2040 hours. At $18 per hour, if she worked 2200 hours per year, she would be indifferent to her original work decision before the wage increase Draw a diagram to show Sally's choices before and after the wage increase. Calculate her maximum and optimal income before and after the wage change. And calculate the substitution effect, income effect and total effect generated by the wage change. Show these three effects in your diagram.