Free Response Problem 2 In response to the ongoing Covid-19 pandemic, the US Federal government made changes to its Child Tax Credit policy. As summarized on the White House's website: The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17. All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called Head of Household). Additionally, eligible families are to receive a portion of the credit every month starting on July 15th to December 15th (the money is automatically deposited in bank accounts).

Part 1: Apply the five steps of comparative statistics/economic analysis to analyze the effect of the Child Tax Credit on the Child Care Services. Assume Child Care is a normal good. Include a 1-2 sentence description of that step as it is applied in the analysis.

Part 2: Illustrate your analysis in a diagram