U=cl1 where U denotes utility, c denotes consumption and I is the number of hours spent on leisure activities in a day. Suppose that this individual has to choose an optimal level of consumption and an optimal level of leisure that maximizes utility. The person has some non-labour income (YN=$100) and receives a wage of $10 per hour (w=$10). The price of consumption is set to $1. Also assume that the maximum allowed leisure is 16 hours per day. Suppose that the government introduces a welfare transfer similar to the Canada Workers Benefit. As a result, the budget constraint changes as follows: The transfer is equal to $10 when leisure is between 12 and 15 hours per day. Compute the new bundle given the new budget constraint. Show that the welfare transfer increases utility but reduces hours worked. U=cl1 where U denotes utility, c denotes consumption and I is the number of hours spent on leisure activities in a day. Suppose that this individual has to choose an optimal level of consumption and an optimal level of leisure that maximizes utility. The person has some non-labour income (YN=$100) and receives a wage of $10 per hour (w=$10). The price of consumption is set to $1. Also assume that the maximum allowed leisure is 16 hours per day. Suppose that the government introduces a welfare transfer similar to the Canada Workers Benefit. As a result, the budget constraint changes as follows: The transfer is equal to $10 when leisure is between 12 and 15 hours per day. Compute the new bundle given the new budget constraint. Show that the welfare transfer increases utility but reduces hours worked