Suppose that the state of Oregon introduces a new plan to respond to COVID-19. The plan has 2 parts:

(1) In order to support essential workers, Oregon will pay all essential workers $5 per hour of hazard pay, in addition to their normal wage. Assume the normal wage for essential workers does not change.

(2) Since COVID-19 can spread in the workplace, Oregon wants as many people to stay home as possible. So, the state will pay anyone who quits their job $100 dollars per day. A person can only claim the benefit if they do not work at all on a given day. Assume that this new $100 benefit will replace all other forms of unemployment insurance. So, if a person works 0 hours a day, the receive exactly $100 dollars. Notice that essential workers qualify for both parts of this plan. If they keep working, they will receive hazard pay. If they quit, they will receive the daily unemployment insurance. For this problem, focus on the daily labor supply decision of an essential worker

(a)How will part (1) of Oregon's new COVID-19 plan change an essential worker's budget line?

(b) How will part (2) of Oregon's new COVID-19 plan change an essential worker's budget line?

(c) [5 Points]Illustrate how this plan changes an essential worker's budget line on an indifference curve graph. Include both an essential worker's old and new budget lines. Additionally, include in your graph an example of what an essential worker's indifference curves would look like if the worker stops working after the new plan takes effect.

(d)Analyze the changes in work incentives caused by this new plan. Make sure to discuss people's decisions to work at all, and also their decision regarding how many hours to work. An indifference curve graph may help in your answer,