This assignment refers to sibling students, Jack and Jill, and their parents, who are labour economists. Jack and jill and Joe are each given $50 per week by their parents (hereafter "the parents") and each student chooses to work 10 hours per week at a job paying $15 per hour to begin this exercise (i.e. jack and Jill are both in equilibrium at 10 hours). You can assume that Sam and Joe can freely choose their hours (even to the last minute) and you may round all answers to one decimal place. jack and Jill's labours supply behaviour is given below: jack Jill Uncompensated Wage Elasticity Compensated Wage Elasticity Income Elasticity 0.10 0.80 0.10 0.90 -0.20 -0.10 (a) Alternatively, the parents contemplate giving Jack and ill each a wage subsidy only on additional hours worked per week beyond 10 hours. Using your assigned elasticities above, calculate the effect of this plan (an increase in the wage to $20 per hour above 10 hours) on the labour supply of Jack and the labour supply of Jill. [Hints: This is equivalent to an overtime premium of 33% (fime and a third pay) above their original equilibrium hours worked at 10 hours. What is the income effect at 10 hours of work? For simplicity, you may assume the same income effect for all additional hours worked above 10 hours of work per week.] Draw an appropriate income-leisure diagram to explain Jack's and Jill's old and new equilibrium positions.