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6. Jane has standard well- behaved preferences over consumption and leisure, has a wage of $40 per hour and has up to 2000 hours per

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6. Jane has standard well- behaved preferences over consumption and leisure, has a wage of $40 per hour and has up to 2000 hours per year to devote to either leisure or wage labour. |f .lane faced no taxes she would find it opijmal to work 1000 hours per year. There are two candidates in a presidential election: Candidate 1 : He would implement a new redistributive tax svstem which would impose a mar nal tax rate of 1% on all earned labor income and give all individuals a cheque of $4000. Candidate 2 : He would keep the status m. Jane would vote for the candidate that maximizes her utility. She would vote for

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