B. Suppose that, as in our treatment of wage taxes, tastes over consumption c and leisure ,
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B. Suppose that, as in our treatment of wage taxes, tastes over consumption c and leisure , can be represented by the utility function u1c, ,2 5 c a
, 112a2 and that all workers have leisure endowment of L
(and no other source of income). Suppose further that, again as in the text, the equilibrium wage in the absence of distortions is w* 5 25.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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