Question: I need solution for this issue with all the details, and I need your help me with all the details A ans B and C?

I need solution for this issue with all the details, and I need your help me with all the details A ans B and C? BR/Ha

Q.1) suppose a country wants to introduce an earned incom tax credit (EITC) for single mother with children .it plans to implement it in the flowing way: - for earning below 10,000$ a tax credit of 25 percent can be claimed. -for earning between 10,000$ and 15.000$ ,the full tax credit can be kept. -for earning above 15,000$ the tax credit is phased out at a 10 percent tax rate.

A) show graphically how the budget constraint changes after the introduction of the earned income tax and explain your reasoning.clearly mark all the important point in your grapg.

b)- using the basic static model of individual labor supply,what does the model predict will happen to. i) labour force participation of single mother with children. ii) single mother with children thet earn below 10,000$ without the EITC. iii) single mother with children that earn between 10,000$ and 15,000$ without the EITC. iv) single mother withe children that earn above 15.000$ withiut the EITC. after the introduction of the earned income tax.you do not have answer this quistion using graph,but shortly explain your answer in each case.

c) How would you test empirically whether and how the introduction of the earned incom tax credit affect labor force participation and hours worked? state the empirical model you would use and what information you would need to do the analysis.

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