2. Phillip receives EITC. If he earns less than $10,000 per year, the government subsidizes his wages by 0.25%. If he earns between $10,000 and $12,000 there is no tax. If he earns greater than $12,000 then he is taxed 0.23%. His market wages are $15 per hour. He has 5,000 hours per year to devote to labor or leisure. His utility function is U(C, L) = C1/2 L.Find the maximum value of the subsidy.Find the range of work hours that will provide the full value of the subsidy.What is the sum of all hours worked (with and without the subsidy) takes until the subsidy goes to zero.Find Phillip’s utility max combination of leisure and labor before the subsidy.Now assume he is eligible for the subsidy. Given the information in parts a-d, does he receive any subsidy? If so, what is his income? For ease, assume the labor/leisure hours you found in part d remain constant.On one graph, clearly label all your answers from parts a-e.