Mark's preference for consumption and leisure is given by

U (C, L) = (C 100)(L 40).

There are 110 hours in a week available to split between labor and leisure. Mark earns $10 per hour. He also received $320 worth of assistance benefits each week regardless of how much he worked.

The government now imposes a tax on labor earnings = 0.2. How many hours will Mark work in this case? Solve Mark's problem again with his after-tax wage.