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3 Overtime wage Suppose that a consumer can earn a higher wage for working overtime. For the first q e [0, 1] amount of time units the consumer works, she receives a real wage of wi, and for the hours worked more than q she receives w2, where w2 > w1. Suppose that the consumer pays no taxes and receives no non-wage income. 1. Draw the consumer's budget constraint, and show her optimal choice of consumption and leisure. 2. Determine what happens if the overtime wage rate w2 increases. Explain your results in terms of income and substitution effects. (Hint: You must consider the case of a worker who initially works overtime and a worker who initially does not work overtime.)