Mark can work up to 8,760 hours per year. He earns $20 per hour of work from his employer but he pays taxes on the income he earns. He pays no taxes on the first $5,000 (his "deductible") he earns. He then pays a marginal tax rate of 20% for any dollar earned above the deductible1 With his after-tax income Mark purchases consumption goods. Assume throughout the question that: i. The price of consumption goods is held constant at 1 (therefore, goods = income), ii. Both leisure and consumption goods are strictly normal goods, and iii. Mark does not earn any exogenous income. a) Putting hours of leisure on the x-axis and consumption of goods on the y-axis, illustrate Mark's budget set. Make sure you include the numerical value of his maximum net income. b) How many hours does Mark have to work to earn the deductible of $5,000? c) Is the opportunity cost of leisure in units of consumption goods constant? d) What are the possible values for the opportunity cost of leisure in units of consumption goods? e) Is this income tax proportional, progressive or regressive? In other words, will the average tax: increase