Each month, a single parent in NYC has 300 hours she can spend working for pay or performing un-paid activities (house chores, taking care of dependents, socializing with friends,...). The worker's hourly wage is $15 (minimum wage in NYC). (the worker has maximum monthly gross earnings: $4,500 ). You are interested in how the taxation system and free children's health insurance affects the worker's budget constraint. On graph paper (if you work on a tablet, choose a graph background), draw a diagram where you measure time spent on unpaid activities along the horizontal axis and consumption along the vertical axis. Assume that the unit price of consumption is P=1. 1. In your diagram, illustrate the worker's budget constraint if she paid no taxes nor received any income maintenance payment. 2. Then add a second budget constraint that takes into account: A. TAXES: The worker has to pay payroll and income taxes according to: - Payroll taxes (they finance Old Age and Disability Insurance as well as Medicare, a public health insurance program for the elderly): tax rate: 7.50% - Income Taxes: tax rate 0% on the first $2,250 of earned income (150 hours worked) 12.50% on following dollars between $2,251 and $4,500. ( 150 to 300 hours worked) The worker, who has 2 children, qualifies for a Earned Income Credit (EIC) equal to $540 flat between $1,350 and $1,650 (110 hours worked) $54020% (earnings $3,000 ) between $1,650 and $4,350 (290 hours worked) $0 more than $4,350 ( 290 hours worked) C. Free Health Insurance for the children If her monthly income is below $4,050 (270 hours worked), the worker's children qualify for free health insurance. The consumption value of the free health insurance is $300 per month