1. Zelda is endowed with 8760 hours of time every year. She earns $50 per hour as a home appraiser and she receives $20,000 per year from a family trust.

a. Draw her budget constraint.

b. Suppose that if Zelda works at all in a year she needs to pay $12,000 to renew her license. Draw her budget constraint.

c. Suppose that Zelda has no licensing fee. However, she may receive a disability benefit of $24,000 per year if she doesn't work. Draw her budget constraint.

d. Suppose that Zelda has no licensing fee, and she receives a disability benefit of $24,000 per year regardless of whether she works. Draw her budget constraint.

e. Rank the reservation wages from parts a, c, and d. You don't need to calculate the reservation wages to answer this question.