Suppose that at this time in the nation of Economia when families split up there are no required child support payments. The legislature is considering a plan where the noncustodial parent must pay the custodial parent 20 percent of his/her income for child support. In this country, everyone can earn $10 per hour and work as much as they want up to 2,000 hours per year.
a. Draw the income-leisure budget lines for the custodial and noncustodial parents before the policy is enacted - two separate graphs.