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Assume that the market wage is equal to 10 per hour. Furthermore, assume that a given individual is endowed with 16 hours of time. Furthermore,
Assume that the market wage is equal to 10 per hour. Furthermore, assume that a given individual is endowed with 16 hours of time. Furthermore, assume that an individual who does not work receives 50 in benefits. Finally, assume that the benefits are reduced by 5 dollars for every 10 dollars earned. Now, imagine that the government decides to reduce the benefits by 1 dollar for every 10 dollars earned. What is the impact of such a change on labor supply? O it falls for all agents O it falls for some agents O it remains unchanged O it increases for all agents
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