Wendy works at a fast food restaurant in Connecticut and has 24 hours per day that she can allocate to work or leisure. Her job pays a wage rate of $10 per hour. Wendy decides to work 10 hours each day. Her indifference curves have the usual shape: they slope downward, they do not cross, and they have the characteristic convex shape. For this question, not all answers need fall exactly on a grid line although many will. Note that (0,0) is not at the edge of the graph. Wendy 480 460 440 420 400 380 360 340 320 300 280 260 240- 220 200- 180 160 140 120 100 80 60 40 20 0- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 a. Label axes and draw Wendy's time allocation budget line for a typical day. Label it B1 (1 point) b. Illustrate the indifference curve at her optimal point. Label the curve II. (1 point) Now assume that the Connecticut legislature passes a minimum wage law that raises Wendy's pay to $15 per hour for the first eight hours she works each day and to $20 per hour for each hour more than eight. c. Draw Wendy's new budget line. Label it B2 (1 point) d. Draw a new indifference curve and identify a new optimal point. Label it 12. (You don't have enough information to know the exact optimal point, just make it consistent with the old one based on the properties of indifference curves.) (1 point) e. Based on what you drew, did Wendy work more or less after the wage change? (1 point) f. The wage change has both income and substitution effects which work in opposite directions for Wendy. Based on what you drew and your answer to part e.. which is stronger for Wendy, the income effect or the substitution effect? (1 point)