The poverty line in this society is atY=C=66. A program is proposed whereby a subsidyS=66Yis given to anyone whose incomeYis below66. In order to implement this, money is raised by having a marginal tax rate of60%for incomes above100. (Assume any budget surplus or deficit on the part of the government is utility-neutral. Assume that the workers can change their time allocations in response to the announced program. Continue to assumew=10.) Calculate the utility levels before and after the program is implemented.

Calculate Ua (after) and Ub(after).

Please note that if your answer Ua(after)=88.75 and Ub(after)=31.36 they are not correct answer, please answer some different number.