Suppose that the government introduces an EITC such that for the first $6,000 in earnings, the government pays 50 per dollar on wages earned. For the next $2,000 of earnings, the credit is held constant at $3,000, and after that point, the credit is reduced at a rate of 20 per dollar earned. When the credit reaches zero, there is no additional EITC.

a. DrawthebudgetconstraintthatreflectsthisEITCforaworkerwhocanworkupto 4,000 hours per year at an hourly wage of $10 per hour. b. If this worker works for 200 hours a year before the program is introduced, what will be the income and substitution effects? Will she work more hours or less in the face of the EITC program?