Let the representative consumer in a static consumption-leisure choice model (c, 1), apart from the nominal wage income W, have some other source of income that does not change with hours of work, e.g., nominal dividend income . Let the tax rate of labor income be zero, but let a lump-sum nominal tax T that the consumer needs to pay. P denotes the general price level of consumption goods in the economy 1. Write down and graph the budget constraint and define the points that cross the axes. Under whiat conditions thare i kinsk peint in our graph? 2. Let those conditions hold so there is a kink in your budget line. Now assume that lump sum taxes increase; draw the new budget line. 3. Draw the new optimality point and the substitution and income effects