Sara and Jerod own a political consulting rm where they manage campaigns and do advertising for local political candidates. Their work is especially busy nearer to electionsthink lots of stamping and stuffing envelopesand so they get anyone they can to pitch in to help them out. This includes their son William. Interestingly, William is a child and, in most states in America, parents can lorce their children to work for free [or them [so long as they follow a few limitations regarding school attendance, use of hazardous equipment, etc). Essentially, that means that. until William turns 18 years old and becomes an adult, he has no reservation option and has to do whatever his parents tell him to do. Further, his parents can choose to keep all the output he produces for themselves. However. once William turns 18 years old and becomes an adult, he has new rights including the reservation option of taking unemployment insurance. FYI, the weekly unemployment insurance benefit in Missouri is $279.00 in March 2023 (rounded to $300 on the figure). The following gure shows William's feasible frontier, his biological survival constraint, his reservation option, and his reservation indifference curve. Gray Dotted Dash I Blue $2,000 Solid Curve Curves- 12 Hours of Free Time [The Quiz continues on the next page] 4 ECO 165 , Principles of Microeconomics 7 Spring 2023 Quiz 2 Problem 3A: Please identify each of the following curves: i. William's feasible frontier ii. William's biological survival constraint iii. William's reservation indifference curve before he's 18 years old iv. William's reservation indifference curve after he's 18 years old Problem 3B: Please identify William's reservation options: i. Before he's 18 years old ii. After he's 18 years old Problem 3C: Before William turns 18, his parents Sara and Jared can use coercion and force him to work as many hours as they want. i. Which curves are relevant to determine the answers to this series of questions? ii. If they use coercion, how many hours will they force William to work? iii. How much of his output will they spend on William '5 needs? iv. How much of his output will they keep for themseives? Problem 30: After William turns 18, he has the reservation option of unemployment insurance and so any agreement to work for his parents Sara and Jerod must be voluntarily agreed to. i. Which curves are relevant to determine the answers to this series of questions? ii. In a voluntary exchange where Sara and Jerod have all the bargaining power. how many hours of William's work maximizes Sara and Jerod's share of the output? iii. How much will they need to pay 'Mlliam to get him to agree to work this many hours? iv. How much of his output will they keep for themselves