How do I answer this question with a graph/ what would the graph look like?

2.=('25 points) In an effort to win a Congressional seat in 2020, Senator Wanda Lust has proposed a plan for supplementing the wages of low wage workers. Workers with earnings less than or equal to $15,000 would receive a subsidy equal to 10% of their earnings. This subsidy would be nanced with a tax of $500 on everyone with earnings greater than $15,000. The proposed plan included the following handy illustration: If eamings are then the subsidy is and the new tax is 0 0 0 $5,000 $500 $0 $10,000 $1,000 $0 $15,000 $1,500 $0 $20,000 0 $500 $25,000 0 $500 $30,000 0 $500 Etc. As an analyst for Lust's opponent, your job is to evaluate this proposal. Your evaluation should assume a worker with an hourly wage of $10 who initially receives no subsidy and pays no taxes. a) Draw an income-leisure diagram of how this combined subsidy and tax plan changes the worker's budget constraint. Be sure to label your axis. Assume there are 8000 hours in a year (so the horizontal axis has 8000 hours). b) What would be the predicted effect of the plan on the labor supply of a worker who works less then 1500 hours per year? If applicable, be sure to talk about income and substitution effects. (You do 1g have to diagram these effects.)