Draw a graph showing how benefits, total income, and wages change under the following conditions:

Wage rate = $10 per hour Welfare benefit = $5,000 − 0.5(Wages > $3,000)

Identify here and label on the graph the following points:

A—welfare benefit when wages = 0

(a) How much is that benefit?

B—welfare benefit when wages = $10,000

(b) How much is that benefit?

C—breakeven level of income

(c) What is that income level?