Suppose Tim gets four social assistance benefits of $25 each and,when he earns an extra dollar,each of the benefits is reduced by one dollar.When he earns less than $25,an extra dollar of earnings leads to a

Question

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Each of Tim's benefits will be reduced by $1 for each extra dollar he earns. Therefore, if he earns an extra dollar while receiving all four benefits, he will receive: 
- $1 from his earnings 
- Lose $4 in benefits ($1 reduction for each of the 4 benefits)

Therefore, his net loss is $3 ($1 earnings - $4 benefit reduction). Since this happens for each extra dollar he earns, if he earns less than $25, his net loss when he earns an extra dollar will be greater than $1.

Suppose Tim Gets Four Social Assistance Benefits of $25 Each