Consider an income guarantee program with an income guarantee of $6,000 and a benefit reduction rate of 50%. A person can work up to 2,000 hours per year at $10 per hour.
A. Draw the person's budget constraint without the income guarantee.
B. Draw the person's budget constraint with the income guarantee.
C. Suppose the income guarantee rises to $9,000 but with a 100% reduction rate. Draw the new budget constraint.