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Plz provide detailed answers thank u;-) 1 Lecture 1. Suppose that the government raises taxes in order to increase government revenue. According to the equilibrium

Plz provide detailed answers thank u;-)

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1 Lecture 1. Suppose that the government raises taxes in order to increase government revenue. According to the equilibrium model of labor supply (where people prefer diversity) explain: (a) Suppose that taxes are all lump sum. Explain the effect of the tax increase on labor supply in terms of the substitution and income effects . (1)) Suppose that the tax is a distortionary income tax, Explain the effect of the tax increase on labor supply in terms of the substitution and income effects . (c) In which of these two scenarios is the tax likely to have the strongest impact on government revenue

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