Suppose a consumer's utility depends on their leisure (X-axis) and consumption (Y-axis). The hours the consumer has to devote to both leisure and work combined is equal to 12. For instance, if the workers chooses 8 hours of work, they have 4 hours of leisure.

a. Graph the consumer's budget line if their wage per hour is $20 and their budget line if the wage is $16 per hour.

b. Suppose that the consumer chose 5 hours of leisure when the wage was $20. If the wage is now $16, and you are given that leisure is a neutral good, then compared to when the wage was $20, will the amount of leisure be higher, lower, unchanged, or is there not enough information to determine? Use substitution and income effects in your answer.

c. In your graph in part 'a', plot the consumer's original consumption bundle and label it 'A'. Also, plot a possible consumption bundle for the consumer when the wage decreases (part 'b' above) and label this point 'B'.