(d) (3 marks) During the pandemic, Cathy has worked from home. Research on working from home (WFH) shows that individuals typically spend about 50% of the time saved (from commuting) in working and 50% in leisure activities. (i) (1 mark) We model working from home as a reduction of S from S = 2 to S = 0. How much of those 2 hours saved does Cathy spends in work? Does it match with the research finding? (ii) (2 marks) To save costs, Cathy's employer is considering a wage cut for its employees working from home. Cathy will be prepared to accept a cut in hourly wages (w) if w does not fall below (write up to two decimal places). [Note: Cathy accepts a wage cut as long as her utility does not fall below pre-WFH utility]