Dr Johnson Receives a Lump Sum Payment of $150 Per

Dr. Johnson receives a lump sum payment of $150 per week. Suppose that the first $150 per week of labor income is untaxed but all labor income above $150 is taxed at a rate of 10%.

A) Dr. Johnson's budget line has a kink in it at the point where he takes 60 units of leisure.
B) Dr. Johnson's budget line has a kink where his income is $300 and his leisure is 50 units.
C) Dr. Johnson's budget line has slope -4.50 everywhere.
D) Dr. Johnson's budget line has no kinks in the part of it that corresponds to a positive labor supply.
E) Dr. Johnson's budget line has a piece that is a horizontal straight line.