7. Does our model predict that raising spousal wages will increase or decrease work hours? a. Illustrate using marginal utility figures that show cases with high and low spousal wages that produce different participation decisions (W>0 versus W=0). b. Illustrate using marginal utility figures that show cases with high and low spousal wages that produce different work hours (both for W>0). [These figures do not have to be exact, but you should show that they satisfy the conditions discussed in class for marginal utilities and the time constraint.] c. Provide intuition for why the marginal utility curve (or curves) will change in the way you showed.2. Increasing (then flat) male wage rates ' Average male wages increased until 19705 - What effect would this have on women's labor supply? - If we treat husband income as \"u nearned\" income that lowers the MUW for women, rising men's earning would predict declining female LFP - This would not explain women's rising LFP Increasing spousal wages Marginal utility Initial MUw MUH MUNW* MUw with higher MU spousal wage L=0; H=T L* = T-H* L=T; H=0 Leisure (L to R) / Home production (R to L) Work timeIncreasing spousal wages Marginal utility MUH MUNW Initial MUw MUL MUw with higher L=0; H=T L* = T- H* L=T; H=0 spousal wage Leisure (L to R) / Home production (R to L) Work time