Question
Consider the following consumer's problem facing a proportional tax. Utility function over consumption (C) and leisure (L) U(C,L) = C1/2L 1/2 Total hours: H =
Consider the following consumer's problem facing a proportional tax.
Utility function over consumption (C) and leisure (L)
U(C,L) = C1/2L 1/2
Total hours: H = 30
Labour hours: NS = H - L
Proportional income tax rate = 0.1
Hourly wage: 5
Find the tax revenue at the optimal bundle
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Economics
Authors: Roger A. Arnold
12th edition
978-1305758674, 1305758676, 978-1285738321
