assignmemt

The basic labour supply model assumes that wage income is untaxed. Suppose instead that a set of marginal tax rates was imposed such that at a wage of R100/hour, the first 5 hours of labour were untaxed, the next 10 hours of labour were taxed at a 20%% rate, and all labour thereafter was taxed at a 50%% rate, Show on a graph how this would affect the budget line. How might this alter work effort? (4)