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PLZ PLZ HELP HERE. Its public economics Censider a cemmunity that has 20 individuals. Ten individuals [type 1) have have wage of $1 per hour

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PLZ PLZ HELP HERE. Its public economics

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Censider a cemmunity that has 20 individuals. Ten individuals [type 1) have have wage of $1 per hour and the other 10 individuals {type 2) have wage of $4 per hour. Each individual is endowed with 1 hour and derives utility ]n(1 h) when she works It hours. If people maximize the sum of after-tax labor income plus utility of leisure, then each individual solves: 1325,1341 t)wh + 111(1 h) where t is the tax rate and w is the wage rate (Le. $w per hour). 1. Derive the labor supply of each type. (10 pts.) 2. What is the tax rate that maximizes the total tax revenue? (10 pts.)

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