Question: Please help answer the last question U B,after , t Problem P510.3.2 3M puntos {calicado} The poverty line in this society is at Y =

Please help answer the last question UB,after , t

Please help answer the last question UB,after , t Problem P510.3.2 3M

Problem P510.3.2 3M puntos {calicado} The poverty line in this society is at Y = C = 66. A program is proposed whereby a subsidy S = 66 i Y is given to anyone whose income Y is below 66. In order to implement this, money is raised by having a marginal tax rate of 60% for incomes above 100. (Assume any budget surplus or decit on the part of the government is utility-neutral. Assume that the workers can change their time allocations in response to the announced program. Continue to assume to = 10.) Calculate the utility levels before and after the program is implemented. 35.55 X

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