Question: please show mathematical working out aswell :) Janet's preferences are given by the following: U (C,L) = L-CQ .) where Cis consumption and L is

 please show mathematical working out aswell :) Janet's preferences are given

please show mathematical working out aswell :)

by the following: U (C,L) = L-CQ .) where Cis consumption and

Janet's preferences are given by the following: U (C,L) = L-CQ .) where Cis consumption and L is leisure. Assume that the total time available to work each week is BO hours The hourly wage rate is $20 and there is a 20% tax on this wage rate. In the scenario Janet's utility Is maximized by choosing to work 50 hours per week. (a)(2 marks) Draw the budget constraint, Make sure you label the equilibrium, axes and Intercepts. Thi(4 mark) Solve for c. What is the level of utility that Janet gets from the Initial equilibrium? 14 marks) Suppose now that the government will provide everyone with a universal basic income of $300 per week. Any income earned from working can be kept without a reduction in the universal basic income. This will be paid for by Increasing; the tax on earnings to 50%% Draw the new budget constraint on your figure from part Id)(3 marks) Explain how the policy will affect hours worked. He)(2 marka) is Janet's utility higher with the UBI

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