Q1. suppose canada eliminates their welfare s ystem completely.
a. show the total effect, subsititution effect, and income effect for an individual who chose to not whork when welfare was in place but decides to work when welfare was removed.
b. now suppose Canada brings back the welfare ystem. show the total, substitution, and income effects for an individual who leaves the labour market. compare to part a .explain any differences.

Q2. Suppose Leisure is always a normal good. show what happens to labour supply for an individual in each section(A,B,C,D) When the EITC is introduced.


Q3. now consider the self-sufficiency project (SSP)
a. show the total, subsititution, and income effects for an individual who deesn't work under regular welfare but chooses to work when the SSP is introduced.
b. what will happen to the labour supply of someone making more than the target level of earnings after the SSP is introduced?


Q4.
a. Suppose Jessica takes 2 hrs to walk to work and back. show her budget constraint.
b. now she moeves further away from work; it takes her 4 hrs to walk to work and back. what are the possible labour supply responses to this change? show them on a graph.