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d. Let T (y) denote the income tax function. Find an income tax function T (y) that implements the socially optimal allocation. Hint: writing out

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d. Let T (y) denote the income tax function. Find an income tax function T (y) that implements the socially optimal allocation. Hint: writing out the budget constraints for both Pawnee and Eagleton residents would help. (6 points) A law was passed by Councilman Jeremy Jamm that prohibits the discrimination of Pawnee and Eagleton residents. This law prohibits Leslie from identifying where each individual is from. In essence, she cannot force productive individuals to pro- duce more, because she is no longer even able to identify who is productive. Fur- thermore, to prevent Leslie from monitoring the Pawgleton residents, Councilman Jamm has also prohibited policies that are based on labor supply I. e. Suppose Leslie tries to implement the same tax function as Part d. How much labor supply does Eagleton residents and Pawnee residents provide? (4 points) f. Explain why Leslie will no longer be able to implement the social optimal allo- cation (CP*, cEx, [P*, [Ex ) in one sentence. (6 points)

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