QUESTION 1 30 points Save Answer Question 1 a. Suppose the labor supply of married women is very sensitive to after-tax wage (perfectly elastic) whereas the labor supply of men is not. Suppose further that the government proposes to reduce the tax on income earned by married women by 5% and raise the tax earned by men by 15%. How would this tax change affect total tax revenue in developing economies? Explain your answer. (4 marks) b. According to Adam Smith, 'The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities. Do you agree with this statement? Discuss your answer. (6 marks)