Section D: Labor Supply (6 points) 1. Charlie has 5,000 hours per year to allocate between work and leisure. If he works, he can earn a gross hourly wage, w, and he faces the following marginal tax rates on his gross earnings: Table 1: Marginal Tax Rates Marginal Tax Rate Gross Earnings 10% $15,000 20% $15,001 - $40.000 25% $40,001 $90,000 30% $90,001 I Figure 1 shows Charlie's budget line for the year. Answer the following questions about the wage rate Hint: The restaurant Rise Over Run on Hillsbourough St sells great sandwiches! C , 38,500 B 19,500 +- D 5000 L 1000 3500 Sodo Figure 1: Charlie's Budget Line (a) What is Charlie's net wage between points A and B on his budget line? (b) What is Charlie's gross wage between points A and B on his budget line? (C) What is Charlie's net wage between points B and C on his budget line? (d) What is Charlie's gross wage, wy Section D: Labor Supply (6 points) 1. Charlie has 5,000 hours per year to allocate between work and leisure. If he works, he can earn a gross hourly wage, w, and he faces the following marginal tax rates on his gross earnings: Table 1: Marginal Tax Rates Marginal Tax Rate Gross Earnings 10% $15,000 20% $15,001 - $40.000 25% $40,001 $90,000 30% $90,001 I Figure 1 shows Charlie's budget line for the year. Answer the following questions about the wage rate Hint: The restaurant Rise Over Run on Hillsbourough St sells great sandwiches! C , 38,500 B 19,500 +- D 5000 L 1000 3500 Sodo Figure 1: Charlie's Budget Line (a) What is Charlie's net wage between points A and B on his budget line? (b) What is Charlie's gross wage between points A and B on his budget line? (C) What is Charlie's net wage between points B and C on his budget line? (d) What is Charlie's gross wage, wy