1.2. Now let's do the same with shifts in Joe's labor supply from Figure 17 .2. We...
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1.2. Now let's do the same with shifts in Joe's labor supply from Figure 17 .2. We li ted five important supply shifters in Chapter 3. For each example below, state whether you think Joe's labor supply will tend to increa e or decrease as a result of the change, and state which of the five factor eem to cau e the supply shift.
a. The government raise Joe's income tax rate, so now he pays 20% of hi wages to the gov ernment instead of the old 10%.
b. The price of comfortable work shoes fall dramatically. Now, his feet won't ache nearly as much after a full day of ork.
c. While in Las Vegas for the weekend, Joe wins a $1 million jackpot.
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Related Book For
Modern Principles Microeconomics
ISBN: 9781429239998
2nd Edition
Authors: Tyler Cowen, Alex Tabarrok
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